What’s up beautiful people, welcome to Wise money women where we help you master your money and transform your life. So if you’re all about getting out of debt saving money and getting yourself in a good position to build wealth then you’re in the right place!
Now I’m going to warn you upfront, this video is not like any of the other videos that I usually do. Because in this video I’m calling you out, I’m getting in your business and we’re going to have a conversation to really look at your life.
Because years ago, I thought everything was fine.
I paid all my bills on time, I paid my credit card debts on time and I thought I was doing a good job.
But in reality, I was one bad day/emergency away from having my whole life blow up.
You can be barely secure, barely protected, and barely financially stable without even realizing it.
I don’t want that for you.
So here are some subtle signs you have a money problem without even recognizing it (and what you can do to fix it).
1. Your money’s always on your mind
It sounds counterintuitive. The popular idea is that if you are thinking about your money, then you must be managing it well, but that’s not the case.
If you are constantly doing mental gymnastics trying to remember when a bill s due, for how much and if you’ve already paid it, or if you’re worried your check will bounce for insufficient funds, then it’s a sign you are not managing your money well.
Properly managed finances get their instructions and then run on autopilot.
It’s not like a baby that needs constant care.
2. You have no idea where your money is going.
Let me ask you a question … what’s the last thing you bought?
If you have trouble determining how you are spending your money or you regularly have more months that money leftover then it’s a sign that you are not in control of your finances.
People who are effectively managing their money can usually site ‘within some degree of certainty’ how much they spend on their expenses, debts, etc.
They get very few surprises when it comes to their expenses and debts.
Understanding, where your money’s going, isn’t hard and can be done with just a few steps.
3. You’re making only the minimum payment on high-interest debt.
Now there are a lot of times where paying only the minimum on your high-interest debt s the best move.
- Saving up an emergency fund when you have no savings.
- Saing while you’re pregnant to pay for a baby
- Saving money in the event of a job loss.
But the common thread here is each scenario is part of a strategic move to achieve a goal.
If you’re regularly only making minimum payments because ‘ that’s all the credit card company said you needed to pay’ then you aren’t managing your finances efficiently.
Let’s say you have a credit card with a $5000 credit card balance and a 24.99% interest rate. If you had a minimum payment of $100 and only paid the minimum on the card, it would take you over 30 years to pay off the card and you would have paid close to $44,000 in interest ALONE!
That’s a huge cry for help that something isn’t right.
When it comes to credit card debt, it pays to pay extra and to pay often. And it’s even better to ensure you have good interest rates and terms so that way your funds can do a whole lot more.
In fact with the same debts, and just a 4.99% interest rate, the debt would be paid off in just under 15 years, but you’d only pay about $1500 in interest.
That’s quite a difference!
Better terms mean paying off your debt faster, and having a better quality of life while you’re at it because you can pay less and see a bigger impact so it’s absolutely worth it to ask your lender to give you a more favorable rate.
But if they won’t budge, then you can give the Credible lending a try. Their platform allows you to input your information in one location and get quotes from several other lenders without any expense to you. And the best part is checking around for the best rates that don’t impact your credit score.
So you can shop around for the best deal without having to put your information all over the internet.
4. You don’t have a plan
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to.”
“I don’t much care where –”
“Then it doesn’t matter which way you go.”
It’s so easy to get caught up in the everyday life of surviving – taking care of yourself, your home, your family, your career, that we can easily fall into the motions.
Then one day you wake up and you have no idea how you got to where you are which s usually in debt, with little savings and not living the life you want.
Having a plan starts out with knowing the life you want for yourself.
But defining the lifestyle you want can be surprisingly hard when you’ve been in survival mode for a long time.
So we created this video that shares 3 simple questions to ask yourself to help you figure it out.
5. You don’t know your numbers
A huge part of being in control of your finances is knowing and keeping track of your income, expenses, debts, net worth, etc.
You can home roll your numbers by using pen and paper, or maybe even an excel sheet. I’ve used both in the past and love them. But Personal Capital takes the cake for being a fully comprehensive budgeting tool that lets you sync all your accounts to one place.
You can easily track expenses in your accounts when you’re income gets deposited, your net worth, and your debt across all your credit cards and loans.
6. You’re stressed about your money
If thinking about your bank account fills your negative feelings then it’s a sign your current system isn’t serving you.
Your money should be fun and fill you with excitement for your future.
Not weigh you down and kill your spirit.
7. Hope is a big part of your financial strategy
If you’re hoping that you don’t lose your job, hoping that you’ve saved enough or hoping things will work out then there’s a problem.
Hope is not a strategy when it comes to your money.
You can’t plan for every possible event, but you can protect yourself, family, and your income by having an emergency fund, having adequate insurance, etc.
And you can protect your future by saving for your retirement and having life insurance to protect your family when you.
You can do better at your money
When you’re doing what you can to survive it’s easy to miss the signs that things aren’t going as well as they could be.
Mastering your money is all about getting control and finding ways to effectively manage your finances in a way that works for you so you can enjoy today while planning to enjoy your life in the future.