24/7 Insights

• • It’s okay to admit you need help managing your money. 
  • Sometimes, outside help is exactly what you need to cut expenses. 
  • It’s okay if you’re in over your head, you can get out.

In today’s world, with rising costs everywhere, keeping and maintaining a budget has become an essential tool for millions. For those who don’t adhere to a strict budget and don’t have disposable income, it’s very easy to rack up mountains of debt. Any time this happens, it can quickly lead to a very stressful lifestyle. 

If you think you are in trouble, one immediate giveaway is that you live paycheck to paycheck. This is a worrying scenario where you get close to running out of money before your next paycheck arrives. The same can be said for someone who has to pick and choose what bills to pay to keep the lights on, water flowing, and food on the table. 

With all this in mind, let’s examine some of the biggest signs you need to seek financial help. 

1. Struggling with Bills

Arguably, the biggest financial sign you are in over your head is a constant struggle to pay your bills. This could be anything from rent and utilities to not making car payments and living off credit cards. This scenario could stem from a job loss, but it’s more likely a lack of budgeting and not properly assessing how much money is coming in every month versus how much money needs to go out. Once you are in a scenario like this, you can quickly get overwhelmed and find it difficult to stick to any long-term money management practices. 

2. Living off Credit Cards

If you live off credit cards or loans from other people, you are financially over your head. While using a credit card in a pinch is okay, it should only be done if you are confident you can quickly pay. In any other situation, relying on credit cards is very dangerous. As credit cards have a finite limit, you are forcing yourself down a path that is not sustainable. As credit card debt accumulates, it acquires interest and potentially damages your credit for years. 

3. No Savings Plan

No matter your age, you should have a savings plan that enables you to set aside money for emergencies, retirement, and other expenses that may be necessary. If you cannot make even small donations to a savings fund every month, it’s an immediate red flag. In these cases, you will likely always be in “survival mode” and living paycheck-to-paycheck. This is one of the primary reasons you should seek the advice of a financial professional to build a savings plan to help you get out of debt. 

4. Stressful Financial Decisions 

If you are in over your head, every financial decision you make will make you feel stressed and uneasy. If this is you, it’s yet another sign you must step back and reevaluate your current financial priorities. Understanding your financial goals by seeking professional advice in the near term is one of the best ways to start digging yourself out of a hole. Ultimately, when you make stress-based financial decisions, you’re not thinking about the long-term repercussions that can leave you in a worse position. A professional financial advisor can help you make smart decisions in these moments. 

5. Relationship Stress

It won’t come as any surprise to learn that financial issues can stress a relationship. Whether with a spouse or partner, money has long been known to be one of the most significant stressors in a relationship. If you are not on the same page, whether it’s what to spend money on or how to pay off debt, you will quickly find yourself in over your head and sinking deeper. The best thing you can do is become a team and agree on the first step toward financial freedom. Instead of straining the relationship, start thinking through how to tackle a budget, set shared goals, and then move forward. 

Seek Financial Advice 

While a financial advisor may not be in everyone’s budget, they are here to help you get back on the right track. It’s a misnomer that financial advisors are solely for high-net-worth individuals. Instead, you can talk to someone who can guide you toward a path of economic stability. In addition, you may not be worrying about retirement yet, but you should use a financial professional to help you think through how to handle building up savings that can be used for various reasons. 

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