It will be very frustrating if you have to try meeting both ends every month and end up paying just the monthly bills and you are left out with no money for future savings. If this is how you end each month, it shows that you are not making enough money or overspending without covering the basic needs.
Do the below check points to find out if you are not making enough money:
- Using credit card every month
One of the biggest sign that your income is not sufficient and you are overspending is, using the credit card every month; especially towards the end of the month. Running out of money between paycheck forces us to use the credit card and it is a very bad sign on our finance. And if you continue using the credit card every month you will end up in bigger issues. And solution is to stop using credit card as soon as possible.
Switching to cash payment will help you understand the amount you are paying and you automatically will stop spending when you run out of money. Leave the card unused at home so that you can prevent all the impulsive purchases.
- Running out of money at the beginning of the month
You may run out of money in the end of month. But if you are running out of money even by 5th of month after paying all the monthly bills, apparent from the credit card bills then you are definitely going through income crisis.
If there is shortage of money even at the beginning of the month, then it is a clear indicator that you are in a financial crisis not because of overspending but that you are not earning enough money.
Finding a new job with better package would be the solution to the increase the income. Or you might have taken a second job, which helps in payment of the bills and save some for emergency fund.
Cutting down on your lifestyles helps you save some money for something that is really important for survival. Like renting a house at lower cost area, taking lowest mobile plan, using public transport, cooking at home, watching movie at home. You will have to be very careful with any expenses and try to save every penny for better use.
- There is nothing else to cut
Now paying only the important bills, you have tried cutting down on the bills and when you end up on nothing else to cut – you are at a worse side of financial management. This can be very frustrating situation to face.
In such situations, you will need to cut all the unnecessary items, may be sell of all that you aren’t using and take up second job with better income. Along with this, spend on necessities and try saving more, valuing each minute of your time with money to ensure you are at a better place in few months or years.
- You are constantly worried about money
If you are constantly worried about the monthly expenses, unexpected expenses, no emergency funds, no savings, that keeps you awake entire night, then you are in a bad shape with your finance. Put use of the small worries and start a budget planning to help you at a better place in coming months.