A financial disaster is a situation where you are faced with unexpected financial obligations and you are not able to handle them due to lack of funds. Studies have shown that some cases of depression and even suicide can be traced to financial disasters, therefore it is very important to make smarter financial decisions to avoid being in such situations.
Here are a few signs that you’re heading towards a financial disaster.
- Living Paycheck To Paycheck: This basically means that all your income is spent on expenses and as a result, you have little or no savings or investments. If you’re currently in this situation, you may be on the verge of a disaster. Even a single financial emergency can put you in a financial crisis.
- Spending Your Entire Salary Before You Receive It: Believe it or not, a lot of people actually spend their salaries before they eventually get paid. They do this by incurring expenses on credit, most times on things that are irrelevant. If you happen to fall into this category, you’re definitely headed for financial doom unless you make some necessary changes to your spending habits.
- Constantly Borrowing Money From Friends and Family: Money is the reason why a lot of relationships are strained so it’s advisable to avoid borrowing money from your friends and family members. An occasional loan is fine but when it becomes too frequent, you may need to re-evaluate your financial decisions.
- Dipping Into Your Savings: When you constantly find yourself taking money from your savings to fulfil a financial obligation other than the original savings goal, there’s a huge problem.
- Struggling To Pay Your Bills: If you’re always paying your bills late or not able to pay them at all, a financial disaster is definitely looming in your nearest future.
Whether you’re heading for a financial disaster, or already there, the following tips will help you get back your journey to financial freedom.
- Get an additional source of income (Side Hustle)
- Create a budget to help to manage your finances properly
- Avoid spending your income before you actually get paid
- Grow your finances with Crowdyvest savings and hyperfund.