Managing your finances is a struggle that every working person can relate to. If you find yourself in the same cashless situation day after day despite having a high salary, then you might need to assess your priorities and keep better track of your money.
Not everyone is a gifted money manager, so here are 5 signs that your ass is going to be bankrupt in no time...unless you change your ways, of course.
1. You're not aware of how much you're spending
Overspending will lead you nowhere. If you're in your late 20s and still have no idea how to keep track of where your money goes, then you have a big problem.
What to do: Write down what you spend every day. Write down how much you earn as well. You can use MS Excel or go with the old-fashioned way of jotting down your expenses in your journal.
2. You have credit card debt
It's easy to acquire a credit card, but what's difficult is actually paying it. The problem with not seeing how much you're spending is being at risk of exceeding your credit limit. This causes you to pay more than what you can afford.
What you should do: Limit your credit card usage. If it's not for necessities such as groceries, then stick to paying with cash.
3. Monthly bills surprise you
If paying your bills still sends you into a state of shock, maybe it's time for you to keep your salary in check.
What you should do: You have two options for you. One, you can allot a chunk of your salary for expenses so your earnings are portioned come billing time. You can also try to find a job which pays more. We're guessing that you'll go with the first option since it's easier. Keep a larger part of your income reserved for the bills. This is also a good way to prevent you from splurging on things you don't need.
4. You're stressted when it comes to money
Just the thought of losing your money a few days after your payday makes you anxious. trying to make ends meet? Well that sends you into a crippling nervous breakdown.
What you should do: Try to find out the cause of all your financial stress. Once you do that, you can properly address it.
5. You haven't invested in anything
By the time you've reached your late 20s, you should have a stable source of income, and we're not talking about your salary. Think of it this way, you wouldn't want to have no source of emergency money. Let's face it, it's difficult to just rely on your income alone.
What you should do: Consult with a professional and see where you can best invest a portion of your savings, whether it be in land, stocks, or insurance. That way, when your life is turned upside down by an emergency, you'll be prepared for it.