You haven’t saved anything for emergencies
If you haven’t included any amount in your budget for emergencies, it’s time for a budget makeover. What if your car breaks down and it needs major repairs? What if you need to travel somewhere for a family emergency? If you don’t have some money set aside for these types of situations, even $50 to change tires could wreak havoc on your budget.
According to financial specialists, your emergency savings should cover five or six months of living expenses. It might seem like a lot but don’t despair. Start by opening a savings account, even if it’s just $100 at first, and then allot a certain amount each month toward that account. Set an objective, like saving $500 or $1,000 each month and once you reach it, increase your savings goal. Come on, you can do it!
Speaking of emergencies, here are 9 Ways to Be Financially Prepared for a Second COVID-19 Lockdown!
You credit card debt gets bigger every month
If your credit card debt increases every month, so much that it becomes almost impossible to pay off, you might want to reconsider your budgeting strategy. Pay closer attention to what you can cut, so you don’t have to use your credit card anymore. If you are looking for some inspiration, check out These 11 Unnecessary Expenses, and Save Money During the Coronavirus Crisis.
Think about it this way: do you really need all those streaming subscriptions? You never watch all of them anyway. What about your gym membership? When was the last time you went to a spinning class? Let’s not even mention utilities and the amount of money you could save there. Better read 20 Surprising Ways to Cut Costs On Every Aspect of Your Home instead.
To make sure you’re not racking up debt each month, try to change your spending habits and trim your monthly costs. This is the best way to avoid charging expenses on a credit card that you could pay with cash or debit card.
