3 Signs That Your Personal Finance Skills Are Terrible
Most people find that next to admitting that that they are poor lovers, they have a very difficult time admitting that they are absolutely horrible with money. Wanting to keep such a fact secret from the world is quite natural. Even though personal finance is not something we are taught in school, we place high expectations on ourselves when it comes to managing our own finances. As a result, even if we suck at it, we are never very receptive to admitting it to ourselves and our loved ones and then taking the next step, which is seeking professional help. No, we are much better at waiting until it is too late before we make the right moves when it comes to personal finances.
So, before you find yourself waiting until it is too late, teach yourself to recognize the following three signs that you are not all that great at personal finances and should seek help. And remember, getting help is not a sign of defeat – Donald Trump doesn’t talk to his bankers because he thinks he is broke; he talks to them because he wants to be rich. Likewise, you should not seek the advice of professionals because you think you are an idiot when it comes to personal finances but because you too want to conquer your finances.
1. You cannot make the minimum payments on your credit cards without having to shuffle money around from other credit products. This is often one of the most-cited tell-tale signs that you are having financial difficulties. However, a lot of people ignore this symptom and the hole gets deeper and the problems only get worse. If you have trouble with your minimum payments (and let’s face it, 3% or less of your total balance really is minimal) you should seek professional advice right away.
2. You use overdraft on your bank account regularly and have a tough time staying “in the black” for more than 1 week. Overdraft by itself is an expensive way to borrow money on credit. Its intention is to be used on a temporary, emergency basis only. So if you find you are using overdraft as a way to get from paycheck to paycheck, the overdraft is not being used for the reason it exists. If you are not able to live without your overdraft, you are simply using it as a band aid solution to deeper problems. Recognize this and speak with your banker or financial professional at your next convenience.
3. Your mortgage, car, or other installment loans are regularly late. If you find that you cannot make your payments when they are due and need to ask for an extension to pay day, then you have a financial problem. It is worth seeking professional advice and seeing about restructuring the debt to align with your pay schedule.
Remember, nobody will think you are a hero when your debt problems get too far out of control and you have no choice but to file for bankruptcy. However, if you approach your finances like the heavyweighters like Donald Trump and Warren Buffett do – they see the professionals as their allies – then you are far more likely to survive personal financial crises, whenever they occur. Simply recognize the symptoms early and respond accordingly.
Chris has been working in the financial services industry for more than 16 years. He maintains a debt-related blog at HowToRepayDebt.com, a website about ways people can find Debt Help on their own or with the help of a professional. As well, he maintains a website about Class-B CDL Jobs at Class-B-CDL-Jobs.com.
Article Source: http://EzineArticles.com/?expert=Chris_Blanchet
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