Disclaimer

This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Monday, October 29, 2007

The First Signs Of Trouble

Posted By Paul

It's easy to talk about people who are far down the road of financial chaos, but I wanted to take a moment to call out some of the initial warning signs. My hope is that if you can spot the early red flags you can make changes before it's too late:

Here are some early signs of trouble:

-You start to carry a credit card balance because you just don't have quite enough money to cover it but you plan to catch up soon.

-You have to hold off on paying bills until payday.

-You bounce a check.

-Your day to day expenses are high enough that you decide to start scaling back on your retirement savings.

-You find yourself dipping into your emergency fund for non-emergency things like utilities.

-You find yourself having trouble paying for basic needs like groceries.

If any of these happen to you then stop, take a moment to look closely at your lifestyle. It could be that you're starting to live beyond your means. Deal with it now before you dig a hole that you'll never get out of.


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