Go easy on the spending! (image)
Are you putting yourself at financial risk? You might be, for any number of reasons. If any of the following are true to you, then start to make amends before you find yourself in financial difficulties.
Reasons why you are putting yourself at financial risk
- You are spending too much money. We aren’t necessarily talking about squandering your money on inessential purchases, but rather the spending you embark on to manage your general household expenses. You can save money at home, and we have some ideas for you here to help you do just that. While paying the bills and food shopping are a necessary expense, you don’t have to bankrupt yourself for simply trying to live a normal life. Of course, if you are also wasting money on those items you don’t need, curb your spending immediately, especially when you don’t have enough money to go around for your usual expenses.
- You are only paying the minimum on your credit card. Listen, you will never pay off your credit card if you are only paying the minimum amount. Especially when the only sum you are paying off is the interest, then you are going to be beholden to debt for a long time to come. This will stop you saving money for an emergency fund, ruin your chances of the nicer things in life, and will do damage to your credit limit. Therefore, pay as much as you can afford above and beyond the minimum expected. Alternatively, transfer the payments over to a credit card with low or zero interest – check out The Motley Fool credit card reviews for possible options – or consolidate your credit card debts into an easier to pay loan to help you get out of debt quicker.
- You aren’t thinking about the future. The ‘live for today’ mentality is not going to help you, and neither is the ‘it won’t happen to me’ mentality, either. You must keep an eye on the future, as you are putting yourself in financial peril if you don’t. This means setting aside money for savings, and not wasting your paycheck to support an extravagant lifestyle. And this also means taking out insurance, such as health and homeowners, as you never know when an emergency will strike. Be wise today, and you will reduce the risks of a poor financial tomorrow.
- You are dipping into your savings. If you have set up a savings account (well done you), you need to keep your fingers away from it. Your savings should go towards your retirement and enhancing your future. The more you dip into it, the more risk you are placing yourself in regards to your future happiness. Speak to your bank, and open up a savings account that restricts you from using it for a fixed period. This will curb your temptation and is a far better option than a general bank account, or that savings tin you have on top of your cupboard.
Are you putting yourself at financial risk? You are if any of the above is true to you. To preserve your future, and to help you get by on a daily basis, resolve to put good money habits into play to keep you financially secure. You know it makes sense!