4 WARNING SIGNS OF FINANCIAL TROUBLES AND SOLUTIONS

Not making enough money to live on can cause a lot of trouble. Besides the fact that you struggle with life every day, struggling to pay bills or having a lot of credit card debt, there are other signs that you are not making enough money. Even though you seem to be fine on the outside, if you have the following signs you need to rebalance your finances and spending to avoid falling into a difficult situation. Here are 4 warning signs of financial troubles and solutions.

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1. Use credit card every month
2- Confused about which bill to pay first
3- Unable to handle emergency situation
4- Failure to meet financial goals

1. Use credit card every month

The most obvious sign that you have an income problem is that you have to use your credit card every month. Even people who are in heavy credit debt, can only pay the minimum payment and still continue to use their credit cards because they do not have enough money to pay for essential needs. Over time, it will create bad habits that leads to worse and worse debt and becoming slaves to credit organisations with high interests.

4 Warning signs of financial troubles and solutions / ph: pexels

Solution for this is stopping to use credit cards which is very difficult, initially because your financial situation may be very bad, without a credit card there will not be enough money to cover basic living needs. However, this is the only way to cut off credit card debt and also help you control and limit unnecessary spending and impulsive purchases.

2- Confused about which bill to pay first

Of course, everyone needs to pay their bills every month. But if you're wondering which bills to pay first rather than all bills at once, you're probably in an income crisis.

The reason for this situation may be that you are renting a house, using services too much compared to your income which lead to overspending, your earned money is not enough to cover your living costs. In order for this situation not to get worse, you must solve this situation as quickly as possible with the solution is cutting down on lifestyle.

There are so many ways to cut your lifestyle and reduce your bills each month. Cutting the budget does not mean that you have to live a miserable life, but rather rethink how you spend money, and balance everything properly with your income.

3- Unable to handle emergency situation

What do you do when a bad situation occurs and you need a lot of money to solve it? Use an emergency fund or borrow and use a credit card? If you choose the second option, you can fall into a financial crisis, make hasty decisions will affect your finances badly later. Solution for this problem is to set up an emergency fund.

How to save when you are in financial trouble? It sounds crazy, but it's the only way to keep your finances and wallets safe in the event of an emergency. This emergency fund will also give you peace of mind and allow you to focus on other goals and matters.

Setting up an emergency fund is not an overnight thing, if you are in financial difficulty you can start saving with a small amount and gradually increase over time.

4- Failure to meet financial goals

Financial goals aren't not only big things like buying a house, buying a car or financial freedom, it also includes paying off debt, saving more money. If, after a long time, you still haven't achieved any of those financial goals, you're not making enough money.

This sign is not as serious as the ones mentioned above, but it greatly affects your life later on and should be resolved before it becomes more troublesome.

Solution for this is making the goal possible.

If your debt amount is nearly your annual income and you also have to pay many bills and essential expenses, you cannot reach your goal in 1 year. Instead of setting big and difficult goals, you should break the goal down or set a lower goal to make it achievable. Only then will you be motivated and know how to cut spending and continue to save to achieve it, otherwise, you will be easily confused and discouraged.