3 Simple Questions to Ask Yourself to Avoid Getting Broke
Money is hard to earn but easy to spend. With all the new gizmos and electronics sprouting like mushrooms, not to mention other products you can easily order online, spending might be harder to resist. Allowing your finances to go haywire can leave you without money. If you need to rethink on your spending habits, its best to know how you can get back on track.
To help you out, here are three simple questions to ask yourself to avoid ending up broke:
Do I Know How Much am I Worth?
Knowing how much you have as well as the debt you owe gives you an idea on how to balance your finances. However, there is more to this than merely knowing your financial worth. You also need to know your worth as a person. Some people go on retail therapy when things are not going well in their lives, say, bad break ups or lost jobs. Others would try to keep up with the Joneses. Just remember, relationships fail and finances of people are not created equal. Prioritize and pay your debt first. And when it comes to making purchases, buy only what you need and spend within your means. If you know how much money you can afford to spend, it will be easier to budget your monthly earnings.
Is This Beyond My Spending Limits?
Rewarding yourself with new clothes or travelling once in a while is not bad. What is not healthy is buying designer clothes that cost more than your month’s salary. And so is going on a weekend getaway and staying in a five-star hotel when you can opt to stay in a modest bed and breakfast. Live within your means and save at least 10% of your money in the bank.
Do I Have Other Resources?
Look for opportunities to augment your income. More income minus less expense equals more savings. You might want to accept freelance jobs. An extra job can make a big difference.
Knowing your financial position and answering these questions might be your key to living a more secure life and not end up being penniless.