Becoming savvy when it comes to handling your money is not something that happens overnight; then again, financial suicide also works the same way. While you may never feel that it happens right away, hitting the rock bottom of money management takes several years and a series of money mishaps. How will you know that you are committing financial suicide? Here are the five signs you need to closely monitor to see if you are about to take the dive towards financial doom.
1. You are living on credit
Debt is neither good nor bad. Depending on the way you make debt work for you, it can become an instrument for your progress and eventual financial freedom. However, debt becomes detrimental, or in some cases dangerous, when you start to become dependent to it. The moment it becomes your last resort to help you get by from one paycheck to the next, it means that you are already suffering from serious money management problems. While you may not notice it, debt in the long run can harm the way not just you handle money but it can also ruin your relationships with other people.
2. You are planning to make huge life decisions without enough savings
You may already be planning to get hitched with your partner since you’ve been a couple for quite some time. Or maybe you feel like becoming a parent has become a growing urge for the moment. If you think these life-altering decisions have been looming on your head over a considerable period, then by all means proceed with it. However, doing these things without the financial capability will just result in one financial misstep to another. Jumping to such decisions with reckless abandon will only result to one thing: financial doom in the years to come.
3. You spend money on gambling
Gambling can come in different forms: gaming in casinos, horse betting, lottery, sweepstakes, sports betting, and other things. Regardless of the form of gambling, there is nothing that ever comes out of betting against chance or trying to game the system. While the real problem is not in gambling itself, the usual problem lies in the constant need to bet whatever money you have even if there’s a slightest chance of hitting the jackpot of your life. Once you’ve lost control of your gambling urges, it is just easy to see the pattern that lies ahead: a future where money goes down the drain because you find comfort in gambling. Unfortunately, that temporary relief will cost you a lifetime of regrets and debts.
4. You prioritize luxury over practicality
Living a luxurious life is not a problem, provided that you have enough money to be able to sustain such lifestyle. An elegant house, a flashy car, the trendiest clothes—these are all attainable if your basic needs and some financial safety measures have already been well taken care of. Unfortunately, prioritizing a swanky lifestyle over more practical purposes as to how you spend your money can have colossal circumstances, especially in your future and your family as well. Remember, you can have a powerful car that costs millions, but it is all for nothing when you have debts racking up in the name of luxury.
5. You procrastinate when it comes to your finances
Some people are born procrastinators: while they may be a bit lax at the start of their tasks, give them last hour or so of their deadline and they can churn out their output beautifully. While it is okay to procrastinate to a certain extent, doing this with your finances can really harm you in the future, especially if you are planning to live comfortably after working for decades. If you think of the long-term financial effects of procrastination, there is nothing but trouble in the future waiting for you. By not thinking about the future and acting immediately, you are endangering the future of your finances and the probability of setting it dwindles.
Financial suicide is a long and harrowing process. Fortunately, it is never too late to reverse the effects if you are willing to change several aspects in your life. When you start kicking old and harmful habits and begin to incorporating new ones, you can turn around your life and start a better one.