If you’re struggling with money, you should be able to spot it.
The biggest issue is that most of us can’t see those bad habits, those financial missteps even when they’re right in front of our eye.
Why exactly aren’t we noticing our inability to save money?
Chances are, you’ve made these bad moves part of your daily money routine and even though deep down you realize that you’re doing all the wrong things, you keep it up because you simply assume that this how life and money are going to be for you for, at the very least, the foreseeable future.
And then, there are the success stories that you simply can’t overlook, those individuals, couples or families that turn things around for the better because they showed they had the ability to notice those less than enviable habits and fixed them.
The key is, of course, knowing what those bad habits look like.
For starters, if you are getting paid, for example, bi weekly and you’re paid on Friday and by Tuesday of the following week you’re out of money, you qualify as being dubbed “paycheck to paycheck” and thus have to rethink your budget and how you balance your expenses versus your income. At the end of the day, you have to start thinking about eliminating expenses or finding ways to earn more money. The expenses elimination is a lot easier of a path since you can’t create income quickly.
To go along with not having enough money to cover your expenses, you also become more adept at paying bills late, most notably your credit cards. Doing so is going to kill off your credit score, a number that might not mean much in theory but can keep you from being able to finance what matters: home, car and other necessities that are going to be hard to come by if you don’t have good credit.
The snowball effect continues if you can’t pay your bills, your credit slips and then you begin to get barraged by calls and creditors that want to know when you’re going to pay, a series of events that can become difficult to deal with as you try to balance work and everything else that goes with life in general.
The only way to break the cycle is to avoid being that person who can’t notice a problem is brewing or in the midst of happening. Those who are able to pinpoint and eventually perfect their money situation are the ones who become success stories, versus just another statistic.
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