Are you suffering as a result of heavy spending? Maybe it all started out with a spending slip or a credit card that you didn’t pay off fast enough. Mounting debt can often have a snow ball effect and can greatly affect your day to day life and future plans.
Holborn Assets has compiled some of the most common scenarios as to why you might be financially unstable and how to knock them on the head, before they spiral out of control:
1. Spend unnecessarily: There are worthwhile investments and then there are wasteful expenditures. Spending on a family vacation or purchasing a vehicle is worth the money. However, leaving all the lights on in your house and having to pay extra on your electricity bill gives a meaning to spending unnecessarily.
2. No financial goals: You are more likely to save if you have something to save for. Let it be the life plans of getting married, buying your first house or pursuing higher studies that drives you. Draw up your financial bucket list and stick to it!
3. Paying debts: One of the biggest headaches is spending money on fines and interest. Paying off debt should be at the top of your ‘good riddance’ list – have you thought of a plan to cover the loans, mortgages, credit cards and rent? Don’t divide your income equally among all your debts. Rather focus on the highest interest rates which are toxic and draining you financially.
4. Cards of Convenience: On top of being financially irresponsible, do you have a bad habit of using credit to buy all things that you really can’t afford? Although this can offer you instantaneous pleasure and happiness, it is a misery in reality.
5. Late with payments: This is a good reason to lose sleep at night and a reason to be behind your finances. If you keep delaying your bill payments, you may risk having your power switched off, your water cut or even run the risk of losing your house (if you miss rent or mortgage payments).
6. No emergency fund: If something goes wrong – you have an accident, job loss, demise of a loved one – how do you plan to get by? An emergency fund is similar to your financial safety net – which is more likely your foundation and ticket to freedom. A good fund takes time to save and should be made a priority.
7. Impulsive expenses: This happens when we decide we want to take the easy path – similar to using credit cards. Impulse means non-essential shopping sprees, eating out that may drain your finances.
If you can relate to all or part of the above points, now is the time to make a change and become more financially fit.
Get in touch with Holborn Assets to discuss your financial future today! Holborn Assets is committed to service excellence in professional financial advisory and planning. We have built a wealth of experience over the years in operation and are prepared to assist in all financial services.