Nobody knows your situation better than you do or at least should. If you struggle to understand your financial situation, then recognize there is a problem and of course, opportunity to improve your situation. There are people that do not dig into the granular detail of their finances and believe they are getting by just fine. This can truly lead to trouble down the road when they hit a point of no return. All along they were not truly doing fine and were actually trending downward financially. The reason they were not able to detect this was because they were heavy on credit cards and loans. At some point, without an appropriate debt-income ratio you are certainly going to end up in an uncomfortable situation.
You need to make sure you are diving into your finances and keeping track of your expenditures and income. Automated payments are acceptable in my book, but make sure you are aware of how much you are spending each month. You should have a list of bills you are paying each month. You should also have an estimated income you are earning each month. Are you spending more than your income? If so, you are going to need to cut back on your expenditures. The less you spend and more you make, the better!
Discipline is super important when it comes to managing your financial situation. It is too easy to spend more than you make. Retailers intentionally make it this way because they want as much of your money as they can get. Online shopping is super easy and convenient, which is what retailers want. They want you to spend your money 24/7 on their business because they know if you are not spending it on them, you may be spending it on someone else. Simply, do not spend it on anyone if you do not need to. Additionally, understand what you are buying and why you are buying it. If you absolutely do not need it, then maybe don’t buy it. These are my thoughts for this rainy Tuesday afternoon. Enjoy your day and let me know your thoughts.