Is your money going out as quickly as it comes in? Consider these 5 areas that could be draining your finances:
Excessive spending
If saving $50 a week adds up over time, spending $50 a week does too. Unnecessary purchases can impact your financial goals. Look at ways to reduce spending money on anything you don’t need until your finances are in order.
Subscriptions
Subscription payments are easily overlooked and can drain your bank account. Unless you use these services regularly, cancel it and put that money to a better purpose.
Borrowing money
If you don’t have the money to buy something, the reality is you simply cannot afford it. Using credit only works if paying the balance off in full each month. Otherwise, high interest rates mean you could still be paying for an item long after you buy it.
Buying a new car
Unless paying for it outright, buying a brand-new car means borrowing money to make payments on something that depreciates. If you must use a loan, consider a car that will cost you less money to insure, gets good gas mileage, and is cheaper to maintain. Your finances will appreciate it!
Living paycheque to paycheque
This unfortunately may mean you’re always a step away from financial trouble. Whether it’s overspending or not saving, this is not a good position to be in if an emergency hits. Many financial experts suggest keeping at least three months of savings in case you lose your job or face some other financial hardship.