Have you looked at your friends and saw nothing but prosperity? You work so hard and never seem to get ahead? Have you often said, “If I could just win the lottery or that contest?” You don’t have to win the lottery but you do have to understand there are pitfalls that may be keeping your from ever becoming financially stable. We will list for you some of the reasons some can never become comfortable in their financial status.
- Your spending is more than you make. Credit cards are the #1 reason for people filing bankruptcy. You have all intentions of paying off what you just charged before it comes due but there seems to always be an unexpected bill keeping you from doing so. You don’t think about how the high-interest rate is making your payments each month go up and paying the minimum never brings the balance down. Make a budget and stick to it! Too much debt will cause you nothing but heartaches. Make it a priority to pay off these debts starting with the lowest balance first.
- Negotiate your salary before you take a job and make sure it is comparable to what others in your field are making. If you do not get a pay increase each year, ask for one.
- Investing. Every dollar you invest will bring you more money if you do not invest in high-risk options. If your employer has a 401k plan, start investing asap. You need an emergency fund for unexpected things that break or have to be replaced. Just a few dollars a paycheck in a jar will help you to have a little nest egg.
- You have gotten comfortable living paycheck to paycheck. What fun do you get out of life doing this? None. Follow an effective budget, reduce your spending and get out of debt. Make sure you set aside some money each month for saving and investing.
- You have a negative mindset about money. You own your money! Start being wise and see yourself getting ahead and it will happen.
The goal here is to begin the process to break the cycle of broke. To create a little buffer that leads to more relaxation, financial peace, and ironically, money to spare.
So money can’ buy love or happiness. But it doesn’t hurt it.
Photo courtesy of Bing via simpleeconomist.com