Some people are great at managing their finances. They plan, put money aside and stick to their budget.
Other people on the other hand struggle. And this struggling is manifested by:
Lying Awake at Night
If you lie awake at night worrying about money and how you are going to cover expenses, it is definitely a sign that you are struggling. Or if you are lying awake debating with yourself what you should pay for first (the rent, school fees, electricity or the money you borrowed) you are struggling.
You can break free from this struggle if you learn what to do, when to do it and how to motivate yourself to actually start doing it. And when you do start-you will start having a good night’s sleep.
Always relying on borrowing from friends, family or money lenders means you are failing to manage your finances. And you are probably consistently struggling at the end of the month to put food on the table or cover other expenses. And the only way that you see out of this is to borrow.
This debt can become overwhelming but you can take control of your situation. If some changes are made.
Always Paying Bills Late
Always having one or two bills that are unpaid means you are stretched too thin but, if you are consistently late with your payments, it’s a sign that something more serious is going on. And once you start this pattern of late payments it will become a habit.
A bad habit.
Using a Budget for Emergencies Only
You can have good intentions and a good memory but, neither good intentions nor a good memory will keep atop of bills. But, a budget will. So if you are operating without a budget it is time to start. You need a budget even if you are great at paying all of your bills and barely need to borrow money each month. A budget helps you focus your spending and eliminate unnecessary spending. It is not an emergency tool. It is a basic financial tool that every savvy money earner uses. And a budget is the best first step to take for a new earner.
From the moment you start earning and paying your own way in life you need a budget. It will identify and list the areas where your money is going to go each month. And it will help you see where you are overspending and what things are just wants and not needs.