5 Reasons Why You Struggle Financially

Five Reasons Why You Struggle Financially
By Nadege Lewis

Many of us struggle to put our financial lives in order. Our money situation only seems to get worse with each passing day. The financial strain is unbearable and you finally decide that you are no longer desire to accept your circumstance as reality. Understanding the root causes of the problem is the first step towards improving. Here are the main reasons why your financial situation is not where it should be.

You have no idea where your money is going

The main reason why your paycheck has a lifespan of a fruit fly is not because of the amount of money you earn. A person can earn $10,000 a month but if they spend $10,100 a month, that person will be broke. This is the why we often hear the accounts of lottery winners losing all of their money in a relatively short amount of time. If you can not account for every dollar spent from your last paycheck, you are at risk of losing your hard earned cash on frivolous spending without even knowing what happened.

You do not put your money to work

Your money can work harder for you than you can work for your money. Unless you understand the way money works, you will continue to wonder why you can not accumulate wealth. Saving is a good thing, but investing your money is better. The absolute best thing you can do for your financial health is think your money as employees and make them work as hard as possible to bring more income for you.

You buy things you can not afford

When you make purchases with your credit card and fail to pay off the balance when it becomes due, you bought beyond what you could afford. The math is simple. One minus two equals to negative one. Financially sound people seek to obtain a positive net worth. As long as you continue to spend in a way that maintains your negative worth, you will struggle in your finances.

You do not plan for the future

Part of the reason we use credit cards is because we did not save for a rainy day or expected emergencies. Looking ahead is an important aspect of your financial health. A portion of the income you receive today should be allocated towards your future. Planning for your future will ensure that you do not have to struggle during your retirement. Planning for your future will ensure that you will even be able to retire.

You do have not financial goals

Without financial goals many of us remain in a cycle of struggling. Months, even years pass and we wonder why our money situation has not magically improved on its own. Goals are a key aspect of evolving financially. Your first goal should be write out measurable short and long-term objectives which will bring your finances to the next level. Goals keep us motivated. Without them, we wander aimlessly paycheck after paycheck without putting a purpose to our money. If our money does not have a purpose, we suffer the fate of having an ailing financial life.

These are five simple things that you should avoid doing when it comes to your money. If you are diligent to making sure that you abstain from committing these financial faux pas, you will begin to create new money habits. These habits are the foundation of wealth building that will positively impact your financial resources.

Nadege Lewis is dedicated to helping people learn fundamental principles that bring about financial freedom. Decide today to create Wealthy Habits that lead to financial freedom. Visit http://www.wealthyhabitsnow.com for free information that will change your financial life.

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