Home PageMoney and Wealth 1015 Signs you Might be Dealing with Financial Disaster

Mismanagement of finances is very critical if you want to achieve financial freedom and sadly, Personal Finance is not a subject that is taught in school that is why so many people are clueless as to how to manage their own money. Here are the signs you might already be exhibiting bad financial behaviors

  1. You Don’t Have a Savings Account

People in financial mess do not have emergency funds so they borrow money for such cases, they take a loan or cash advance, therefore incurring more debt, therefore, It is important for everyone to have a savings account for them to create their emergency fund that should have at least 3-6 months’ worth of income to cope with emergencies or unexpected changes. You will need this money to take care of your expenses when your car suddenly breaks down or you have to pay the hospital a visit due to an illness or worse because you quit or lost your job, or you have to pay your mortgage. Savings is an expense, and it’s something that should be budgeted for just like any other expense

  1. Making Payments with Credit Card.

Worse is if you only pay the minimum on each of your credit card bill. You could be saddled with credit card debt for 5 years, or even 10 for that purchase you made recently. When you use your credit card to make payments on other bills, you are playing a high-risk game, You’re not only paying bills with money that you don’t have, you will end up paying more in the end because of the interest you accrue from your credit card company. And if your answer to your financial woes is to apply for another credit card because what you have are maxed-out, or near their credit limit, then you undoubtedly are headed to a financial crisis!

  1. Neglecting your retirement plan.

How about your retirement? You may be young but this is the perfect time to think of your retirement fund. When your retirement plans involve winning the lotto, then you’re in trouble. Some people spend money buying lotto tickets hoping that a windfall will come their way to cover their retirement.

  1. You keep on waiting for Salary to come in

It is five days away from payday and you are surviving with a few pesos for food and transportation every day. Whereas when you received your salary, you spend it with getting expensive coffee and buying all the things that you don’t need. Heck you don’t even budget.


If you somehow find yourself in any of the above situation, it’s not too late to learn the art of delaying gratification. Self-control is your best bet. If you can’t afford it, wait until you have enough cash to pay for it. If you are a young professional without any dependents, it wouldn’t be impossible to set aside even just P1,000 as your monthly savings.

How do you do that? Start keeping track of your expenses which should never exceed your income. List down where you spend your money on a given month and see which portions you can cut back. If only you would limit your booze or think twice before getting that new iPhone, you would have saved a lot already!






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