Financial Warning Signs that You Should Be Paying Attention to
It’s hard to distinguish between a developing country and one that is already developed when it comes to deciding which has the most financial problems.
On the one hand, countries such as the U.S, are one of the most developed countries in the world and have a lot of resources and specifically a stronger economy than most countries. However, countries that experience a sense of self-sufficiency, also think they can afford anything they like, and we’re not talking your typical car and then moving on from that. Americans, in general, are known to spend a lot of money, and the majority spend more money that they don’t have than that of which they do.
When it comes to a country such as South Africa again, which is a developing country, there’s a lot of financial trouble and just like the U.S, obtaining it is no accident. People know, regardless of where they live, that spending money they don’t own, is bad, yet they do it anyway, which has a major effect on economies all over the globe every day.
Financial signs you should be aware of
You don’t know what your financial situation is
Considering how important it is to know how much money you have and where it’s going to, we’d say that this is something that slips people’s minds every single day. Perhaps you’ve noticed you’re spending more on your clothing account than you did before. Do you question it, or just pay your installment like a good Samaritan? Another reason why you should always stay aware is that you might be on the verge of being blacklisted or the amount you’re spending on your credit card, might even affect your credit score, yet you won’t know about it at all.
You lie about money
If you’re hiding your statements and credit expenditure specifically, to your spouse, then you have a problem with spending too much money. If you feel like your spouse will have something negative to say about it, you should probably stop?
Are you funding your debt with debt?
If you’re transferring money from any credit accounts to cheque accounts, with the intent to fund your car payment, debt or a home loan, you might end up having to pay double interest and if done regularly, you will find yourself struggling to get out of it.
“Savings” is a foreign word to you
If you don’t have any savings, especially living in South Africa, you are considered irresponsible as the economy is unpredictable, and with companies retrenching individuals left and right, nobody knows whether they might be next.
You pay minimum amounts on your credit cards
You’ll be shocked to know that many people never want to pay off their credit cards. They’d rather just pay a small amount to keep it in check. Yet, what they forget is that it has a major effect on their financial well-being and turns out to be a means of control over their finances for years and years to come.