Money, or more specifically, lack of money, has the power to cause unimaginable stress. After all, whether we like it or not, it’s nearly impossible to live in this world when you don’t have any money in the bank. Unfortunately, most people struggling with money problems tend to bury their head in the sand and can’t see the warning signs right in front of them. If you want to manage your stress and set yourself up for a brighter future, then this is the last thing you should do. Instead, you need to take control. Here are four warning signs you should be looking out for.
- Your Emergency Fund Is Non Existent
Disaster can strike at any moment, leaving you without cash until the end of the month or even longer. Unless you have an emergency fund to fall back on, you’ll be left having to borrow, which will put you in unnecessary debt. If you want to be more financially stable, then you need to work towards building your emergency fund. This should cover at least three months worth of household expenses, including rent or mortgage payments, food, and any other bills.
- You Don’t Have Proper Coverage
Cutting back on insurance or completely going without it might save you some money in the short term, but it can completely ruin you financially if anything were to go wrong. In some cases, such as with car insurance, you might even get into legal trouble. It’s much better to shop around for an affordable company, like Safe Auto, than it is to go without it. This way you’re properly protected and have something to fall back on later, even if it costs you a little now.
- You Can’t Live Paycheck To Paycheck
Living paycheck to paycheck is no proper way to live, but what’s even worse than this is not being able to live paycheck to paycheck. If you have to borrow money each month to cover your expenses, it’s a huge sign that you’re in financial trouble. After all, you may be paying the bills this month, but repayments mean you’ll have to pay even more next month, which, of course, is something you won’t be able to do. This traps you in a downward spiral, so avoid it at all costs.
- You Avoid Conversations About Money
More often than not, people know that they’re financially unstable; They just won’t admit to themselves. As a defence mechanism, they try to avoid conversations that have anything to do with money or debt, even if these conversations happen to be with their partner and spouse. If this is something you’ve started to do, then it’s important that you stop, because you aren’t going to get out of your financial rut unless you’re open, honest, and ask for help.
Being financially unstable isn’t the end; There are plenty of things you can do to get yourself into a better place. However, before you can do that, you need to see that there’s a problem, so be on the lookout for the warning signs listed above.
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