Are you in the middle what feels like a financial disaster? Do you think that you might be headed in that direction,? Do you feel like life is great, but the rug could be pulled out from under you – and you would be hopelessly lost? If you do not have the right financial systems in place to keep you afloat, then you could be headed right into a financial disaster.
The stress that can come along with financial worries, can be unbearable. The thought of entering a financial disaster can control your every thought. Today I want to share with you some pretty telltale signs that you are either in a financial disaster or are headed towards one.
You do not have to “check off” every one of these in order to be a financial disaster. Just one of these could mean you are in way over your head and need to hit the restart button – get your butt in gear, and take back control of your financial life!
Physical Signs of a financial disaster:
Before we get into the tell-tale signs that you are in the midst of a financial disaster, I want to talk about the physical implications of having financial stress in your life. If you are walking through a financial disaster, it is likely that you are experiencing one or all of the following:
- Racing heart – sometimes out of the blue
- Trouble Sleeping
- Panic Attacks
- Thoughts of dread
- Depression – lack of desire to do anything
- Guilt – ESPECIALLY when you buy anything
- Total and consuming thoughts about your finances
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These are just a few of the ways stress can manifest itself into a physical attack. However, there is a solution. NO matter what kind of financial burden you are in, there is a safe solution, to fix it – and I am here to help!
9 signs you are in a financial disaster:
- You are living paycheck to paycheck. – You have a countdown until you get paid again, not because you are excited that you are working and have a paycheck, but because you actually NEED the money to survive. Now, everybody needs money. Everybody collects a paycheck (For the most part) but those that are financially successful (And anybody can be, on ANY income) can go more than the standard 14 days between paychecks and still pay their bills, and handle their needs.
- You cannot pay your bills all at once. – Are you constantly trying to juggle who gets paid, and when? Do you even have a set day, that you pay your bills? Do you know when and who you pay each month? If you have to tell your bill companies that they need to wait a certain amount of time before you can pay a monthly bill, then you are in or are headed towards a financial disaster. You absolutely need to be able to pay all of your monthly bills, every month, on time, without sacrificing one for another. AND without robbing Peter in order to pay Paul!
- Little to no savings. – Do you have a savings account? Yes? Awesome! Do you have more than a few dollars in it? How about 6 months of expenses saved up in there? No? Well, then you might just be headed towards a financial disaster! I know that most Americans do not have 6 months expenses saved, but let’s not be like most Americans. As a matter of fact, 46% of Americans would not be able to cover a $400.00 emergency if it were to arise. Seriously! STOP and think about that…
$400.00. – 46% of Americans would NOT BE ABLE TO come up with 400 dollars for a true emergency. — Car breaks down, nope. How water heater blows up, nope. Child breaks a leg, nope. Insurance deductible for a house fire, nope. DO NOT let $400.00 be the difference between success and failure! Please.
- No retirement. – Now I know what you are thinking. If we cannot afford a $400.00 emergency, how the heck do you expect us to be saving for retirement? And honestly, I don’t. At least not today. But I darn sure do expect it in the near future. And by near future, I mean within the next year – NO MATTER what your current financial situation is. 1 year is plenty of time to get a plan in place and start making serious strides towards a debt-free life and an active retirement account.
- Loans, Loans, and more loans. – Do you have a loan for everything? Loans for your cars, your couch, that giant TV, maybe your dining room set, and maybe some bedroom furniture? Did you have to take out the CareCredit card when your child broke their tooth, and it needed to be fixed? At the time you probably thought that 1) You could afford the minimum payments and that 2) You would pay the balance off in full before the interest rate hit it. Right? Well, did you? Have you been hit with high interest on all those little purchases, and are now struggling to pay your monthly minimums?
Solution- You might hate this. However, if you are serious about your financial life, then take this advice: SELL ALL OF IT! Sell it all, and use that money to get out from underneath those bad loans. Nearly everything you can purchase with the “rent to own” promise, you can live without until you can pay for it with cash!
- Taken out a payday loan. – Payday loans should be illegal (In my opinion). Never, Ever, EVER take out a payday loan. This is a cycle that will be nearly impossible to break. The amount of money that they take from you – and what you are left over with is never worth it. You are being stolen from.
- Cannot pay your credit card balance in full. – If you have used your credit cards to pay for necessities like groceries, or your electric payment because 1) You did not have enough money in your checking account or 2) You did not KNOW how much money you had in your checking account, but now cannot pay your balance off in full – you might be (Or are already in) headed towards a financial disaster. Carrying any balance on a credit card is dangerous, but carrying a balance over 30% of the credit line, also hurts your credit score!
- Borrow money from family and friends. – If you have to rely on family and friends to help you get through the month, you are absolutely already living in the middle of a financial disaster. Everybody falls on hard times, and if you have family there to help you-you are more fortunate than many, but do not take advantage – and DO NOT come to rely on them.
- Have overdraft fees. – If you are paying overdraft fees on your checking account, you are in a financial disaster. Not keeping track of how much money you have available is not only reckless it is dangerous. Overdraft fees can stack up very quickly, and it can be difficult to get out from underneath them, and still pay your monthly bills – especially when you are already living paycheck to paycheck. Overdraft fees can be the catalyst to a vicious financial disaster cycle!
So be honest with yourself. How many of these situations are you currently living in? Debt is not a life sentence, and it does not have to rule the rest of your days. You can get yourself out from under this situation, and I am here to help!