8 Signs Your Finances are in Trouble — Trees Total of Cash

Congratulations on taking the effort to enhance your financial circumstance.   Whether you find useful personal finance advice on this site or someplace else, the fact that you’re reading a personal finance blog is a big step in getting a handle on your cash.

Are you on the road to financial hardship or financial success?

Are you on the road to financial hardship or financial success?

Today I’m writing to highlight a number of the financial warning signs.

1. You are not sure of Your Checking and Savings Account Balances:

It goes without mentioning that staying on top of your checking accounts and savings account balances is very important.   This is particularly true if you write a whole lot of paper checks or discuss a ATM card.   Before we began religiously tracking our checking and savings account balances (download my free Excel checkbook registry), my wife and I were regularly assessed overdraft charges from our bank.   At $40 to $50 a pop, these overdraft charges can accumulate fast.   Even worse could be a symptom of a much larger issue.

2. You Can’t Talk in Detail About Your Business Benefits:

Your employer has to offer you, are you taking advantage of the benefits?   Many people don’t take advantage of the many benefits offered by the employer.   To find out more on getting the most from your employer’s benefits package, make sure you browse my 2018 open registration benefits manual.

3. You Haven’t Started a Retirement Savings Account:

While I made many mistakes that are financial in my 20’s and early 30 ‘s do enrolled in my business 401K retirement plan as soon as began at work.   I can’t stress the importance of this enough.   It is a whole lot simpler to start saving early instead of waiting until after when you’ll likely have more financial obligations (kids, mortgage, car loans, etc.).

4. Unworn Clothes/Equipment:

Do you have an extraordinary quantity of sporting gear or clothing that have never been utilized?   Perhaps clothes that still have the tags on them from if you bought them on sale?   Not only are you wasting you’re cluttering up your house with things that you’re not using.   This is not a lifestyle option that is healthy fiscally or otherwise.

Among the biggest signs you could be in financial trouble, and yet one which I discuss quite a bit, is that the complete price of your entire vehicles (automobiles, trucks, ships, motorcycles, ATVs, RVs, etc.) is much over fifty percent of your yearly income.   That’s correct, if you’re earning $80,000, the complete price of all the vehicles you have must be over $40,000 (and that’s pushing it).   You really ought to think about downsizing; ESPECIALLY if you still owe money on those vehicles, if your vehicles have been worth greater than half your yearly household income.

6. You Don’t Have Any Emergency Fund:

The other red flag that you’re not doing well financially is that you don’t have an emergency finance (whatsoever).   Yes, I’ve mentioned in the past that it’s preferable to have at least three to 6 months of expenses but lots of individuals don’t have any savings.

7. You Have Trouble Locating Tax Deductible Receipts After Doing Your Taxes:

If you do not have a dedicated filing program to keep track of your important financial records (tax obligations or otherwise), then This Might be a symptom of a larger issue when it comes to your own finances.     Among the most obvious traits of self explanatory millionaires is their focus on detail keep track of their personal finances.

8. You Can’t Purchase Your Bills Until You Get Your Next Verify:

I know the sense of living paycheck to paycheck all also. When my wife and I first got married, there have been lots of occasions when we did not have sufficient money in our checking account to pay the month’s rent, car payment, etc..   We’d thought we “were doing OK” because we’d eventually get compensated and make the payment a day or two late (but well within the timeframe before it’s deemed late).   We were able to solve this by carefully budgeting our cash and making up a plan on how our cash could be spent in the coming months.

Too Much Debt?  Download our free Trees Total of Money   Lending Snowball Calculator and observe how fast you can pay your debt off.