If you are constantly struggling to make ends meet, you may be facing a combination of problems. It can be frustrating to be in a financial rut and not be able to find a way out. You may think that you make decent money, but you are still struggling each month. You may be overspending or you may not make enough money. You may be overspending while not making enough to cover your basic needs. This can lead to real trouble. If you do not make enough to cover your bills, you will need to take steps now to increase your income. Even if you feel like you are too poor to budget, a budget can help you get back on track, and you can use these strategies to help you cope with being poor. Learn seven signs that you do not make enough money.
1. You Are Using Your Credit Cards Every Month
One of the biggest signs that you have an income issue is that you are using credit cards towards the end of the month to cover all of your expenses. If you are running out of money during the month, or you are using credit cards to help you manage between paychecks, then you are most likely facing an income issue.
Solution: Stop Using your Credit Cards
2. You Run Out of Money at the Beginning of the Month
Every now and then, you can have a bad month where everything is super tight the last week or so. However, if you are struggling to make ends meet after the fifth of the month, then you are most likely facing an income crisis. This is a strong indicator of an income crisis, because it demonstrates that there is not as much overspending going on. If you are barely able to pay your bills and you do not have enough left over to eat on, then you are not making enough money.
3. You Can’t Cover Your Bills
If you are choosing between which bills to pay, then you definitely have an income crisis. It is important to do something about this situation as quickly as possible. You may need to take on a second job to help you catch up. You should also look for ways to reduce your bills like moving to an area with lower rent or selling your car. Take the steps both in the short term and the long term to fix this situation.
Solution: Cut Your Lifestyle
4. There’s Nothing Else to Cut
When you look at your budget to find extra money, you cannot find anything else to cut. You are already doing without cable, you do not have a gym membership, and you never eat out. It can be very frustrating when you are choosing between eating and paying your electricity bill. If you have cut everything you can and you still cannot make ends meet then you have a serious income issue.
Solution: Set Up a Barebones Budget
5. You Can’t Handle an Emergency
When you are stretched tight each month, it is difficult to put money aside in an emergency fund. If you are not able to handle an emergency, you may end up using your credit cards. Eventually your credit card payments will grow large enough that they cripple you even more. If you do not have any extra money for an emergency fund each month, then you do not make enough money.
Solution: Set Up an Emergency Fund
6. You Are Constantly Worried About Money
There is a difference between worrying about how to pay for an unexpected car repair, and the sick knot in your stomach that never leaves as you worry about how to pay for groceries or cover the rent. If you are worrying about money constantly, and it is keeping you awake at nights, you are likely not making enough money. Put some of the worry to good use and start making a plan that will turn your situation around.
Solution: Learn to Stop Worrying About Money
7. You Are Not Reaching Your Financial Goals
If you are barely staying afloat and not making any progress on paying off your debt or saving money, then you are likely not making enough money. This situation may not be as serious as the other signs listed above, but it is still enough that you may want to take the steps you need to change your current situation. You may find yourself in this situation when you start your first job, and you don’t make as much as you thought you would. You need to address this before it becomes a more permanent problem.
Solution: Make Sure Your Goals Are Achievable