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Why Your Personal Finances Are A Mess

If you can’t bear to look at your personal finances right now, then something needs to be done. We can be forgiven for being a little reckless with money when we’re young, but as we get older, rectifying our personal finance problems is crucial to avoid getting into a bigger mess. Here are a few reasons your personal finances might be a mess and what you can do about them:

You Are Spending More Than You Earn

Be honest with yourself. Are you spending more than you earn? Maybe you aren’t sure – we’ll get to that later. Some people spend more than they earn on innocent things, like food shopping and bills. Some people buy things they don’t realize are adding up, like coffee at the local coffee shop. Some people constantly go into their overdraft, take out loans, and borrow money from friends and family. If you continue to do this, you’re going to need some advice from Meek Law Firm when it turns out you can’t pay it off. Spending more than you earn is very dangerous. Chances are, the things you’re buying aren’t even making you happy. Cut back on your spending to start improving your finances right now.

You’re Not Keeping Track Of The Numbers

You should know how much you have coming in, and how much you have going out. You should also have a rough idea of what you spend on things like food, petrol, and other important things that aren’t set in stone. Then, you know how much you have left over to save and spend on yourself. Keeping track of the numbers will mean you can see where your money is going, cut back easily, and even start to put some away for a rainy day. You shouldn’t be living hand to mouth.

 

You Don’t Have Financial Goals

If you don’t have financial goals, then your finances are going to be a mess. If you’re saving but you’re unsure of how much you want to save or what it’s for, then you might dip into it eventually when a cool new gadget or item of clothing catches your eye. Set yourself some financial goals, and then find the best bank accounts to support them. Cash ISAs are great because you don’t need to pay tax on the interest you earn. There are savings accounts you can dip into right away, but you should do your best to forget the money is there.

You’re Buying Things You Don’t Need

Some people become addicted to the thrill that buying things can give them. This thrill doesn’t last long, and soon enough, you need to buy more things to get the same high. Before you know it, you’re in a ton of debt surrounded by things you don’t need. To avoid doing this, avoid buying things spontaneously. Always go shopping with a list of things you actually need, and stick to it. If you see something you want, give yourself a sort of ‘cooling off’ period to think about it. If you still want to buy it after 3-4 weeks, then you can feel OK about getting it. If you don’t, then you probably didn’t want it anyway!