Signs That You’re Mishandling Your Money and How to Fix It

How can you definitely say that you have a problem managing your money? Here are 7 definite signs:

• You’re counting down to the next payday. That’s ‘cause you need money, and you need it now… for things you bought yesterday.
• Your late bills are piling up by the month. You’ve fallen behind your payments for your credit cards, utilities, car, rent, phone, and mortgage. Some of your bills are even months due?
• You’re borrowing from practically everyone. You’ve borrowed from your parents, siblings, officemates, relatives, and friends. You’ve even already taken an advance on your paycheck.
• Things are stressing you out. With all the payments you’re due, and people hounding you for their money, things are putting a strain on your work, health and relationships.
• The bank won’t loan you anymore. You have a very low credit rating and any pleading won’t get your loan application approved. They’re even threatening to revoke your credit cards.

Hopefully, the five signs above don’t all apply to you. But if they do, or even if just one of them does, here are ways on how you can put things back into order:

• Pay your bills on time. Sounds obvious, but a lot of people still miss this, opting to use their money to make purchases or some other treats.
• Cut back on your expenses. We know there’s a social cost of living a frugal life and sometimes we have to maintain appearances, but things will only get worse if we continue to buy things we can’t afford.
• Stop using your credit cards. Credit cards are convenient, but they often tempt us to buying things we don’t really need. Pay with cash so you have a good idea just how much you can rightfully spend.
• Cancel useless cards. If you’re getting discounts from only one card, then there’s no sense keeping two or three others. Saving money means efficient spending.
• Embrace a simple life. That can be a bit of a challenge for Singaporean urbanites, but it could be necessary. Cut back on your holidays, take public transport, and stop eating at fancy restaurants.
• Get professional help. There are firms who work by consolidating your debts and finding ways on how you can best use your salary to pay off your dues. You can also try the non-profit Credit Counselling Singapore to set up a debt repayment plan.