Life has its ups and downs, but if there’s one thing we can all agree on, the last thing we’d ever want to go down is the balance in our bank accounts, especially during such scary and uncertain times that we are in today. And while many young and independent individuals have the luxury of only worrying about themselves, it never hurts to be extra careful and picky with any of our financial decisions because having a few extra bucks saved up every month will help.
However, despite how obvious the principle of saving and investing may be, countless individuals across the world are guilty of overlooking this important step of keeping their finances together. And so, to ensure that no one else falls victim to this downward spiral, we’ve put together a list of red flags that will tell you whether you’re spending too much or have just made a few bad purchases.
At The Very Least, You’re Somewhat Worried
Before we head straight onto the list, give yourself credit for the fact that you’re at the very least worried as to what’s happening with your cash because it shows that you’re conscious about your money. Remember, nobody’s perfect, and making mistakes here and there is just one more aspect to the cycle of life, so don’t worry too much because there are no problems that can’t be resolved with a bit of effort and creativity.
#1 Your Amazon Cart Is Never Empty
Firstly, one dead giveaway of you spending too much and indulging in some bad money habits is when your Amazon cart is never empty even after a recent purchase. Sure, we know how tempting it can be to just scroll through your recommended section and finding a new summer dress or a luxury timepiece perfect for a night out. But, it’s clear-cut evidence of you buying on every whim and impulse that comes to mind, which isn’t the best thing if we’re thinking about your wallet’s longevity.
#2 When Rent/Housing Don’t Take Up Most Of Your Budget
Secondly, in terms of budget planning and review, if it ever comes out that paying rent or working on your home’s equity isn’t the most expensive thing on your list, then you have quite the problematic monthly budget on your hands. It would’ve been forgivable if you’re still making the transition of managing a business or side hustle, but if it all links up to expensive non-essential items, then you might want to cut it back quite a bit. Furthermore, a much worse situation would be having no budget at all and not knowing what your financial situation is really like.
#3 Clueless As To Where Your Money Went
Last but not least, one telltale sign of being careless with your savings and following bad spending habits is when you’re clueless as to where your money went and always find yourself short on cash every single time. If you’ve ever been in the middle of a HIIT workout session only for the sudden thought of finances to worry you so abruptly, then this might already be some transdimensional premonition urging you to check your bank account. So, it might be time to cram those brain juices where they’re needed the most.
Shifting Your Focus To More Important Things
Luckily enough, despite how serious of a topic money matters can be, all it takes to step up your game and make a change is by shifting your focus to more important things. And if you’re capable of flipping the switch on your mindset and slowly working your way up to becoming more financially responsible, then taking down the red flags mentioned above will take you no time at all.
- Work On Your Debt And Obligations: One easy way of keeping your finances in check is by reminding yourself of any debt and obligations that still need to be worked down to zero. A common culprit tends to be student loans, but if you’ve recently bought a car or are still in the earlier years of your mortgage, then this can work just as well. The idea here is to relay a sense of urgency to your mind and capitalize on the positive feedback loop of working down any existing debt off your balance sheets.
- Long-Term Investments & Savings: If you really need to scratch the itch of spending a bit, then we strongly suggest that you spend some time researching long-term investments available at your financial position and increasing your monthly savings. Both options will show you where your money goes and offers a way of making your money work for you. However, if you can’t help the need to spend, then we’d recommend more productive investments like putting money into your house through landscaping services and quick renovations.
Successful Personal Finance Is Key To Happiness
While money won’t buy you happiness outright, not having to worry about money matters too often is most certainly a plus by anyone’s standards. So, don’t let the fleeting bliss of spending too much blind you from the consequences, and start your successful personal finance journey ASAP.