5 Reasons Why Finances Could be Tight

by Alice Quinlan 09/22/2019

Have you been wondering lately about why you are always broke? You will need to ask yourself a lot of important questions to know exactly what you are doing wrong. These are the questions that will help you point out the primary reasons for your financial woes. 

Going by data made available by the World Bank, a considerable number of workers can hardly survive through the month and also there is an increasing gap between the rich and the poor. At this point, you need to take measures so that you do not join the league of people who never have savings. Here are some reasons you could be facing financial issues:

Reduced Income 

The mistake people make is that they base their spending plans on their gross income instead of their net income. The outcome is spending more than your earnings. In order to avoid being broke due to this situation, it is advisable to adjust your lifestyle according to your disposable income.

Medical Expenses

Medical expense is one of the reasons why many people go broke. Do you pay your medical bills from your pocket or do you have medical insurance? It has been discovered a lot of people go bankrupt as a result of substantial medical bills. The best way to minimize your medical expenses is by choosing the appropriate insurance coverage.

Overspending 

When you spend more than your income, there is a high tendency of going broke. You should try and minimize some lifestyles that attract lots of spending. Examples of such lifestyle are driving posh cars, going on frequent holidays, dressing in designer clothes and many more. Such an expensive lifestyle can make salary earners go broke if they don't take care.

Costly Housing 

Many young adults spend nearly half of their income on housing. To avoid massive spending on housing, you should look for affordable housing that should not be more than 20% of your income. Staying in the city outskirt, getting a roommate, or renting a room that is smaller will help you save on housing.

Lack of Saving

Many people go broke today because of lack of money. A good practice that all workers should cultivate is saving for a rainy day. When you don't save money, you are likely to incur enormous debt when there is an emergency. Saving can put an end to debt and brokenness. You should know that nothing is too small to save.

About the Author
Author

Alice Quinlan

Alice Quinlan is the one to get it DONE! Direct|Determined|Driven, Alice’s first step towards “getting it done” is to listen well and to understand what her buyers and sellers want and need in order to achieve their dream of owning their own home. She is a Certified Negotiation Expert! Alice is a Jersey Girl but has had the pleasure of calling Colorado home for many years. She has three children who have all attended school in Douglas County. In her free time, she loves attending concerts, baking, traveling and exploring all that Colorado has to offer. Alice and her husband have moved several times in the past 30 years making her an expert on relocating with a family. Alice knows what it takes to move a family across the country or across town. She is your relocation expert! Alice also knows what it takes to get into and out of the real estate market. Whether you’re looking to buy,sell or invest in real estate, Alice is committed to providing you with exceptional service. Alice’s goal is to guide you through your real estate transaction from start to finish while keeping you informed every step of the way. Give Alice a try and watch her exceed your expectations!