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10 Signs You’re Committing Financial Suicide Though You Don’t Feel You Are

10 Signs You’re Committing Financial Suicide Though You Don’t Feel You Are

Being able to properly handle your finances is one of the things that proves that you are a mature person. This is easier said than done, and even if you are in possession of some extra cash at the end of each month, it’s still not proof that you’re being responsible. In other words, simply not being irresponsible does not necessarily make you a prudent individual.

The act of financial suicide is not something that happens instantly, it is something you have plenty of time to back out from. Unfortunately, we can constantly see how people are either struggling with their finances, or how they ended up completely broke. When something like that happens, the blame is usually placed on the country’s economy, or on the tax system, etc. Although there is truth in that statement, it still does not completely justify one’s recklessness. If you are aware of the conditions you are living in, you need to work towards solutions, not excuses. Here are the most common mistakes people make that cause them to collapse financially.

1. You decide to have children, but you are financially unstable

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    If you plan on raising kids properly, you need to have financial stability, and enough time on your hands to do it properly. Without a stable financial state, you may be setting a bad role model for them. After all, the apple does not fall far from the tree, and financial suicide is likely to be inherited.

    Being able to provide for your child’s health care, clothing, education, and so on is not cheap (over a lifetime you may end up spending millions), but necessary for a brighter future. Take these expenses into consideration when you plan on raising children. If you truly want to have a healthy family, prioritize your career, and use your desire to allow your ambitions to properly bloom.

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    2. You are financially dependent on other people

    Our friends and family are always willing to help, however going through life as a charity case is definitely not the way to live. Everybody has his or her boiling point, and no one will tolerate your incompetence forever. Sooner or later, your relationship with your loved ones will get worse if you do not start doing something productive with your life.

    When you borrow money, do everything in your power not to get into the same situation again. Calculate how to lower your expenses, think about what you can do to earn some extra cash. To say it bluntly, you need to realize that you are in a serious problem.

    3. You start settling your debts by turning to money loans

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      Regardless of how difficult your financial situation is, you must never allow yourself to settle your debts by turning to payday loan companies. These are just seemingly easy solutions, meant to lure you in and deplete your finances faster than you think. These companies are very widespread and they are extremely profitable. If you want to get out of debt, this is not a solution – you will only end up owing more money. Any financial adviser will tell you the same thing. These are just quick solutions that sound appealing in order to masquerade the intentions of completely draining your budget. Settle your debts by using any other alternative.

      4. You rely on bank credit all the time

      Another form of financial irresponsibility is constantly relying on bank credit. We hear stories all the time about how people are barely making ends meet, so they are waiting for their credit to be approved, so they are basically always in the red. The problem is the unpredictable future: if you are constantly tapping into your cash reserves, you are completely defenseless. What if something happens that throws your living situation out of balance? You will have no efficient solution, and it’s all downhill from that moment forth.

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      To avoid this, start living more modestly. Focus your efforts to return to a balanced budget, and consider all the possible options for earning a little extra. Ask your employer if there are more responsibilities that you can take on and be financially compensated for. Restoring your emergency fund is of utmost importance.

      5. You frequently gamble (or gamble large amounts of money)

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        Gambling in casinos, playing the lottery, and placing bets on sports games can be extremely addictive. When there is enough money in your budget, starting to place bets for the sake of earning a little extra is a terrible decision. Winning is far from impossible in these cases, but as mentioned, the problem lies in losing control. It is still unclear whether gambling should be defined as addiction or compulsion, one thing is certain however – people tend to use it as an escape mechanism, to relieve themselves from the anxiety, or to get their dose of adrenalin rush. Eventually, the condition takes over to the point where you are no longer concerned with the consequences.

        Whenever you think about gambling, put all the money you would invest in a piggy bank. Gradually, you will accumulate a handsome bank deposit that you can place in your local bank and allow it to grow.

        6. You are negligent towards office equipment

        This mostly applies to business owners. It is extremely difficult to balance your priorities, but still, your future and your business’s well being depends on the quality of your service. Always make sure everything is functioning properly, otherwise the whole situation can be followed be an unfortunate turn of events – also known as financial suicide.

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        Computers need to be maintained and function properly. Office printers do not last forever and you need to know when they might need a replacement. Headphone sets, cables and every minor detail that may seem unimportant need to be fully functional or they may harm your professional image. In this world, appearances and first impressions matter, so always strive to be at your best.

        7. Choosing the wrong/luxurious home

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          Living in a place you cannot afford, or living in an inconvenient location, is one of the most common causes for financial suicide. If you need to commute a lot in order to work on a daily basis you are likely to encounter problems with budget. Luckily this is a manageable issue, carpooling and saving money on gas is one of the best solutions.

          Much larger problems occur when you take a bigger bite than you can chew, or to be more precise, buy an expensive house without enough support. This kind of costly lifestyle will have a troublesome aftermath. Honestly, if you are not completely certain you can afford something, chances are you probably can’t. Opt for a home that you can afford one hundred percent – even if you are hoping to use it as an investment.

          8. You spend more than you earn on a monthly basis

          This is a very common trait in people who are newly employed. During payday week, they live like royalty, and for the rest of the month, they adopt a lifestyle similar to hermits. You may not have serious troubles with maxed out credit or loans, but you are still not making good use of what could be a very lucrative setup in future.

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          Know your limitations, calculate your expenses, and at the end of the month, treat yourself with something – but at the same time, avoid straining your budget. Work towards creating a solid nest egg and securing a more stable future.

          9. You are not planning your future

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            Responsibility merits healthy ambition, realistic goals, and always thinking ahead. Living in the moment is for high school kids and college students. With that kind of mindset, reality is bound to hit you hard. Spending cash and enjoying life is what people usually do during a summer break, since doing it throughout a whole year will leave you broke.

            Do not be satisfied with your life for too long. Too much hedonism is toxic for your future. Take time to enjoy, but never forget to push yourself and make endeavors, for the sake of progression. Organize your life, set goals and objectives, and devise strategies on how to realize them. It is imperative that you devote at least two hours of your day time working towards these achievements. Even failing is not a complete waste of time and money, as long as you have gained something valuable that you can implement in the future.

            10. You are lazy

            If you are done with your work and you go home and you have no other responsibilities, then you are lazy. It may seem like a strange definition, but it is true. It means that you have at least 5 hours of productive time and you decide there is nothing that you can do. Lazy does not necessarily mean you are lying around doing nothing, it also means you have a mortifying lack of ambition. In other words, not working towards increasing your budget means you are working against it, and once again, a step closer to financial suicide.

            When you are blessed with enough free time, do not let it go to waste, learn to invest it into something that can be lucrative. Even taking up a hobby can be a judicious investment, as long as there is someone who will appreciate your work.

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            Djordje Todorovic

            Blogger, Gamer Extraordinaire

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            Last Updated on August 15, 2018

            30 Fun Things You Can Do This Summer Without Spending Much

            30 Fun Things You Can Do This Summer Without Spending Much

            Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

            Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

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            1. Visit a strawberry festival

            Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

            2. Have a picnic

            Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

            3. Camp in your back yard

              The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

              4. Take long walks

              Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

              5. Break a world record

              Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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              6. Go on a bike ride

              The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

              7. Join a gym class

                The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

                8. Find a new hobby

                The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

                9. Join a sports team

                Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

                10. Make a slip ‘n slide

                  Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

                  11. Make a treasure hunt for your kids

                  Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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                  12. Visit a free festival

                  Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

                  13. Visit the zoo

                    Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

                    14. Take a road trip

                    Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

                    15. Play ultimate frisbee in the park

                      Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

                      16. Make your own ice cream

                      Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

                      17. Invite your neighbors over for a BBQ

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                        When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

                        18. Get a summer job

                        For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

                        19. Attend a charity event

                        Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

                        20. Visit a national park

                        National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

                        21. Visit your local comedy club

                          Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                          22. Make your own hammock

                            Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                            23. Read in your new hammock

                            Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                            24. Watch a movie outside

                            Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                            25. Take a hike

                              Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                              26. Learn how to fly a kite

                              As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                              27. Work out at the park

                              American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                              28. Take your dog to the beach

                                One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                                29. Make a summer smoothie

                                Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                                30. Attend a free yoga session at the beach

                                No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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