Habits That Might Lead You To A Financial Crisis
There are just so many ways that people can get into financial crisis, such as a sudden death of a family member, sudden medical emergency, divorce, losing a job, and more. However, not everyone who is suffering from a financial crisis are going through something drastic as those things, they are most likely doing something that they’re not supposed to when it comes to money, and that is what we will be tackling about today. Personal financial crisis can happen to anyone at any point of their lives, especially if you are not handling your money well. Here are some of the most common causes of personal financial crisis.
[su_quote cite=”John D. Rockefeller” class=”cust-pagination”] “God gave me my money, I believe the power to make money is a gift from God, to be developed and used to the best of our ability for the good of mankind. Having been endowed with the gift I possess, I believe it is my duty to make money and still more money and to use the money I make for the good of my fellow man according to the dictates of my conscience.” [/su_quote]
WHAT IS A FINANCIAL CRISIS?
A financial crisis is basically a situation wherein a person or a company’s supply of money is outpaced by its demand. It is often associated with recession, banking panics, stock market crashes and more. Anyone can be in a personal financial crisis, not just you, not just your relatives, even the rich people next door.
MAJOR CAUSES WHY YOU ARE SUFFERING FROM A PERSONAL FINANCIAL CRISIS
• You Don’t Have A Budget
One of the major reasons why people often get into a personal financial crisis without them actually knowing it right away is that they don’t live on a budget. Most people think that it is completely unnecessary especially if you are basically earning for yourself. Budgeting wouldn’t just benefit you for the time being, but it would also help you manage your money in the future.
• You Ignore Your Bills
Another common mistake people make that causes a financial crisis is that they don’t pay their bills on time. If you keep on piling them up, you wouldn’t just have a bad record on the company, but also, you will have a hard time paying for them all at the same time since you keep on ignoring the fact that it needs to get paid once the bill gets to you.
• You Don’t Live Within Your Means
This has got to be one of the major causes of being in a personal financial crisis. People tend to not live within their means, which basically mean that they spend more than they actually earn. It might not make sense but it is like spending too much money on things that you don’t really need but you simply don’t care because that’s just how you want to live. You will most likely realize it when you need money and you don’t have any because you’ve already spent it all since you have such expensive habits.
• You Care Too Much About How People See You
In this digital age, we are in, social media basically rules the world at the moment. So whatever news and information you post there, people will eventually see. That is why people nowadays are just living to impress other people, especially those who they don’t really like. People like to brag, even if they need to get broke just to look rich.
• You Are Stuck With Your Low-Paying Job
Finally, one of the major causes of being in a financial crisis is that you are afraid to move forward. You are stuck in a job that you basically don’t like with a low average salary. Don’t be afraid to seek for new opportunities, it is a fact that there will be risks but it is better to know that you are actually trying, instead of just settling for less.
[su_quote cite=”Maya Angelou” class=”cust-pagination”]“You can only become truly accomplished at something you love. Don’t make money your goal, instead, pursue the things you love doing and then do them so well that people can’t take their eyes off of you.”[/su_quote]
It is totally okay to have a little meltdown but keep in mind that sulking up and stressing out wouldn’t exactly help you with your current financial crisis. That is why it is best to stay optimistic on everything, get yourself back up because no one would do it but you. Once you have managed to get back up, then try not to do the same mistakes again.
More in Financial Adviser
Why Getting a Private Jet May Not Be a Good Idea
Getting your hands on a private jet may seem like the best thing in the world, as that is considered the...July 30, 2022
Katie Holmes Treats Daughter Suri to Paris for Birthday, But Insider Says the Girl Is Far from a Spoiled Brat
When you are a parent, you would do your very best to celebrate your child’s birthday as awesome as you can...July 30, 2022
Here’s Why Putting Your Money in a Savings Account is a Bad Idea
You must be thinking that investing in a bank’s saving account is a great way to increase the value of your...July 30, 2022
Warren Buffett, Ed Sheeran and More Wealthy Celebrities Who Lead a Surprisingly Frugal Lifestyle
Can you even imagine how different your life would be, had you been a millionaire, or better yet, a billionaire? Flip...July 30, 2022
TV Shows You Should Watch If You Want To Learn About Money
Making it big in Wall Street will be tough for a newbie, but anyone can always learn how to make it...July 30, 2022
Billionaire Kylie Jenner Reveals the Real Reason Why She Started a Business, And It’s Not What We Expected!
Starting your business at a young age, shelling out hard-earned money from your stints, and risking your time and effort to...July 29, 2022
5 Smart Ways To Save Money On Auto Insurance
The costs of auto insurance premiums have increased significantly and can vary by hundreds of dollars depending upon the type of...July 29, 2022
Debt Consolidation 101: 5 Things To Check If You Are Ready For It
Debt consolidation has gained tremendous popularity in the recent years. Banks have been very rigorous on their risk models and it...July 29, 2022
5 Things To Ask Before Buying Your First Secondhand Car In 2017
People opt for purchasing a used car most of the time because it can save them a lot of money. While...July 29, 2022