Happy Monday everyone! This is a guest post from my V.A. Clarisse. Let me know if you would like to guest post on SS.
Ever wondered why you’re still broke, even though you have a job and a salary? Keep reading!
You don’t have savings.
You have a bank account, but it’s always empty! It will remain empty if you don’t care to set aside money from your salary each month. We all know that everyone’s financial situation is different, that’s why we are the only one who knows what will be our savings rate. Honestly, I didn’t have any savings before, because I thought I didn’t earn enough, but I was TOTALLY WRONG! It’s not how much money you earn, it is how you spend it. Saving a little is better than saving nothing. It helps you weather a storm instead of charging your card.
You don’t have a financial plan or a budget.
Having a good financial plan or a budget is really, really important if you want to achieve financial independence. You should keep track of your income and expenses. There is a lot of budgeting software that you can use, you can also download some apps on your mobile so that you can easily view your accounts every day. You need to define your spending and priorities. Try to live within your means and watch out for small leak expenses that do add up.
You’re not side hustling
Side hustling nowadays is the new normal! There are lots of side hustle ideas that you can make extra money with. Especially now that summer is just around the corner, why don’t you take a look at these side hustle ideas and start earning some extra money.
- You can rent your parking area. If you have an extra parking space or unused one, you can make money with it.
- If you have your own car you can drive forUber or Lyft or any rideshare companies.
- You can evenrent your car or vehicle.
- You can be atutor if you are good at something, and the good part is that you can even tutor online.
- Be aVirtual Assistant or a writer.
- Make your ownblog or website.
- If you have an existing blog, why not create orbuy another blog?
- You canrent your house to travellers thanks to Airbnb. Click HERE to get $50 extra with your first rental.
You always treat your friends.
Do you usually pay for your friends every time you go out with them? If so, you are definitely in trouble! If you have a friend who always asks you to go out to eat, but refuses to pay his part, something is not right. You are spending more money on treating your friends; you need to clear it with them that you’re not an ATM. When I go out with my friends, we always pay what we ordered. Bear in mind, if they’re really your true friends, they will not allow you to pay every time you go out.
You’re deeply in debt
Do you have lot of debt? What if you lose your job tomorrow or your company declares bankruptcy? Are you ready for that scenario? How would you still pay your debts? And the worst part is if you need a loan to pay for your existing loans. You need to get rid of your debt slowly, living a debt free life is priceless! Try to contact your creditors and negotiate with them. You need to review your debt and find out how much money you owe. It’s important that you have a good strategy plan to reduce your debt.
YOLO (You Only Live Once)
Did you hear or read about this YOLO thing and similar carpe diem mantras? Are you a happy go lucky kind of person because You Only Live Once? This YOLO mentality has really influenced the lifestyle choices of millenials. You need to be fully responsible especially if you already have a family of your own. There are lot of ways that you can enjoy life without spending money. You Only Live Once and you don’t want to give yourself a hard time paying debts, don’t you?
You buy gadgets you can’t afford
iPhone 6s plus and other iThings, you have them all. I understand, who wouldn’t want to own a beautiful gadget? But before you decided to buy it, you should ask yourself first if you really need it. Know the difference between wants and needs. I have had my Samsung S3 for 3 years now and the power button is broken. I really wanted to buy a Samsung S6 edge or a Note 5, but it’s very expensive. I can buy an older phone like S5 or S4, which is cheaper. Realize that your phone company still charges you for the “free” phone through a very expensive data plan.
You live paycheck to paycheck.
Are you still living paycheck to paycheck and struggling financially? Paycheck-to-paycheck living happens when you are constantly waiting for your next salary before you make basic financial moves, like buying food, paying your monthly bills and loans. You don’t even have enough money for unexpected expenses. You need to make a good financial budget. Review your lifestyle and see where the money goes every month so you can correct.
After you received your salary you go directly to a party.
This one is connected to number 6, the YOLO thing! After waiting for 15 or 30 days for your salary, you immediately go to a party and spend tons of money on drinks. It’s not wrong to party and enjoy your friends, but within reason of course. If you don’t want to be broke anymore, you need to be financially responsible. If you have a family that depends on your income, blowing your cash on nightlife is not the way to go.
You Try to Keep Up With the Joneses
What is Keeping up with the Joneses? It is an American expression that actually was coined in 1913 with a comic strip by Arthur R. “Pop” Momand and now it refers to a person who always buy things because his/her friends have it. We keep on comparing ourselves to our nearest neighbors or friends– probably the ones who look just a little bit wealthier than we do. Social media is one of the leading reasons why you’re still broke because of this attitude. When you are browsing your Facebook and you find out that your friend got the latest iPhone, you also want to get that new mobile and make an impulse buy even if you just bought your phone recently. You noticed that your colleague has a new shiny car and even if you know that you don’t have enough savings, you still apply for a loan car for a brand new car!