18 Oct Are You Living Beyond Your Means?
While some of us may be able to enjoy a comfortable lifestyle, others may not be so fortunate. In some instances, one of the hardest things to come to term with is changing our lifestyle due to unforeseen circumstances. Many of us can experience some form of financial difficulty, but in some instances, there will be those who choose to ignore the issues and carry on with the lifestyle they’ve been accustomed to, on the assumption that things will improve.
While a positive outlook is to be commended, it is important that we can recognise any problems that could cause us problems in the future.
Your Credit Card Bills Are Becoming Higher
There’s no denying how convenient a credit card can be, but it’s important that they’re used in the right way, otherwise they can cause us problems moving forward. If you find that you’re relying on your credit card more and more, then it may be a good idea to review your current expenditure.
It may take some willpower and some may find it difficult, but the alternative outcome is much worse. If you were to fall behind on credit card payments, then it’s likely you will be paying interest, along with any other fees. This can also mean that there is less money available for other bills.
A good start to establish as to whether you’re using your credit card too much is to look at the purchases being made. Red flags can be using the credit card for frequent groceries and the payment of bills.
You Have No Access to Savings
While the concept of saving can be hard for some households, many will look to find a way. While many can assume that they’re likely to fall victim to any surprise bills, none of us truly know what’s around the corner. Sure, we can look towards a credit card or loan should we need access to a large sum of money, but this method can cost us more as a result.
If you find that there isn’t enough to set aside, then it may be worth reviewing your current expenditure to see if any cutbacks can be made to help build a stronger financial foundation for the future.
You Find You Are Frequently Borrowing from Friends and Family
We’ve all been in a situation where we’ve been cut short and turn to friends and family. However, if you’re finding you have to ask those close to you on a regular basis, then a reshuffle of your finances could be in order.
Friends and family are often only too happy to help those close to them in times of need, but it’s important that we’re able to recognise that a problem exists. If you find that you’re frequently asking to borrow money, it’s important that you get to the root of the problem.
To do this, look at the reason why you’re borrowing the money, and then backtrack from there. Was it because of a shortfall, or did you decide to make a luxurious purchase on the assumption that other money would arrive.
Continuously asking friends and family to borrow you money not only causes friction, but there is also a danger than you could be making your current financial situation worse.
Bills Are Often Paid Late
There will always be a time when we miss a bill, it’s part of human nature. Bills can fall on a selection of different dates, and the whole ordeal can be a little difficult to track. However, taking our eye off the ball can mean that we’re not only subjected to more charges, but damaging our credit score in the process.
If your bills are rarely paid on the due date, then it’s important that a budget is drawn up as soon as possible. This means separating your luxury purchases away from your essentials, and then ensuring that you have the income to meet the payment dates. If you find that you’re not receiving enough income, then you will need to speak to the relevant companies to see if a solution can be put in place.
For example, if you’re currently playing a lot for your mobile phone contract, but don’t make full use of the package you have, then it could be worthwhile inquiring as to whether any cheaper tariffs are available
In some instances, you may just concur that some of the expenses you have need to be cut free. While this can be difficult, you need to remember that it doesn’t have to be forever, you just need to ensure you’re taking control of the current situation.
You Can’t Afford the Daily Essentials
It’s one thing to cut out the cigarettes or coffee from our life, but something else when it comes to our daily needs. If you currently find that there little left over for the daily essentials such as bread and milk, then it’s important you work out your income and expenditure as soon as possible.
There can be several reasons as to why you’re struggling, and it’s not always due to overspending. If you’ve recently started a new job, then it’s possible you could be paying too much tax due to an incorrect tax code. Similarly, you could be entitled to benefits you didn’t know about.
Getting our finances in order is often something that is put on the backburner, but the longer it’s left, the more volatile the situation can become. Nobody likes to admit they are struggling financially, but the truth is that it’s a more common situation than many would assume. Remember, nobody has to know the intimate details of your financial situation, the important thing is that you recognise it, and take the necessary action.