If you take a look at your financial picture and are not sure what to think about it, chances are you may be leaning towards the side of not doing so well. If you have to ask yourself questions then that might mean because you know deep down that things may have gotten a bit out of hand.
When it comes to your financial health there are a few key factors that you should look at that can help you determine what your overall health is looking like. Take a look at some of the top signs that may mean you need to makeover your financial situation, and fast.
Your Debt Is Greater Than Your Assets
If the amount that you owe greatly outweighs the amount that you own or have coming in, then you may be in over your head. It’s important to keep a healthy balance of what you need to pay and what you have on hand should you need liquid funds.
If you can’t seem to say no to a purchase even if you know it will send you even greater in debt, then you should consider freezing your accounts altogether.
People who find themselves completely overwhelmed with debt can start to have feelings of helplessness and have no idea where to begin to get rid of the debt. It’s important that before you panic and decide that there is nowhere to turn, you should remember that there is always a solution. Consider seeking a debt consolidation loan.
You Have No Savings
It’s important to always keep minimally a small amount of savings on hand in the case of emergency or needing to make a big purchase that isn’t anticipated. This will clear your stress and keep your state of mind light and reassured that you’ll be taken care of.
If a major disaster strikes or you are out of work what is your survival strategy? While living for today is an admirable quality, it is helpful to plan for your future and have a preparedness. Try to put away a small amount each week from your paychecks and put them aside for a rainy day. After a while, you’d be surprised how much a little bit goes a long way.
You Have Outstanding Payments
Late payments or skipping payments altogether is the worst possible thing that you can do for your financial health. It looks bad to creditors, and can even stop you from being able to get a place to live or a contract for a cell phone.
Make sure that you always pay your bills on time and avoid late fees and piled on interest. Set up auto-payments if you don’t feel confident about remembering each month.