Tuesday, July 20, 2010

Signs of having Financial Problems

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Here are Seven (7) signs that will tell you if you are having financial problems:

1. You have ZERO (0) savings.
2. You need your credit card to pay for your basic consumption.
3. You have used the maximum credit limit of your credit card.
4. You only pay the minimum monthly payment dues of your credit card.
5. You use your other credit card cash advances to pay your other credit card payments.
6. Your frequent callers are debt collectors officer.
7. Your issued checks bounced.

We will discuss each of the seven signs so that you will be able to manage your credit card debt problems. The first of the seven signs is You Have Zero Savings.

1. You Have Zero (0) Savings.

Zero. None. Nil. Nada. Zilch.

“We have become ninety-nine percent money mad. The method of living at home modestly and within our income, laying a little by systematically for the proverbial rainy day which is due to come, can almost be listed among the lost arts.” - George Washington Carver

Sadly, the quote above is very true. People nowadays rarely save because they have not seen the value of saving. Saving is really important. You may never know when you are in need of money. Savings come in many forms, at least get yourself your own savings account and start saving up for the rainy day. You ask me, how much do you save per month? Well, I set aside 10% of my salary for my savings account and another 5% for my emergency savings account. I consider my savings account as my lifeline account. Meaning, when I'm out of job, when I decide to retire from my job, I have my savings to put food on my table or start up a business. My emergency account is for emergencies like if I get sick, if a member of my family gets sick. If you're experiencing credit card debt problems, your savings could have saved you from all trouble.

If you still haven't got your own savings account, do start saving now.

On my next post, we will tackle the rest of the seven signs that you are undergoing financial problems.

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