If your finances are heading in the wrong direction, you should be able to tell. Free Money Finance has five signs that you’re living beyond your means. The first step to becoming financially fit is recognizing that you need to change your financial habits. If you’re oblivious to the fact that you need financial help, then read those five signs. If more than one of them applies to you, then you need help.
The good news is that you’re never too far gone to change your financial position. The bad news is that it takes hard work and sacrifice to change your financial situation. You will need to:
- Temporarily cut out life’s little luxuries
- Get On a Simplified Budget
- Get On A Plan To Eliminate Your Debt
- Educate yourself about personal finance
- Systematically invest in index funds and ETF’s as early as possible
- Get great deals on large purchases such as real estate, cars, and furniture
My favorite sign from FMF is the one about more than 28% of your income going trowards your house. Owning a house isn’t always a blessing. A house can easily put you in financial hardship. Millions of Americans are figuring that out the hard way right now. If you need financial help, get out of the denial stage. Meet with a fee-only financial planner with the heart of a teacher. Map out a route to financial success. The quicker you realize that you have a problem, the easier it will be to get out of the hole that you’re already in.