Advertising
Advertising

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

Boy with Cash

    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.

    Advertising

    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

    o-LOAN-SHARK-facebook

      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.

      Advertising

      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)

      62134b91096c1644493eee1fb834345a_dd1cfea_image_poker

        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.

        Advertising

        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

        8986859

          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.

          Advertising

          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

          personalfinance-2

            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.

            More by this author

            Djordje Todorovic

            Blogger, Gamer Extraordinaire

            20 Things Smart People Don’t Do (And What They Do Instead) 5 Tips on How to be a More Responsible Person 7 Essential Tools Every Serious Startup Needs 7 Common Struggles of Minimalist Beginners and How to Overcome Them 4 Shortcuts to Self Improvement for Tech Junkies and Nerds

            Trending in Money

            1 How to Answer the Tough Question: What are Your Salary Requirements? 2 How Personal Finance Software Helps You Get More Out of Your Money 3 The Definitive Guide to Get Out of Debt Fast (And Forever) 4 35 Real Ways to Actually Make Money Online 5 30 Fun Things To Do With Your Friends Without Spending Much

            Read Next

            Advertising
            Advertising

            Published on November 8, 2018

            How to Answer the Tough Question: What are Your Salary Requirements?

            How to Answer the Tough Question: What are Your Salary Requirements?

            After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

            But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

            Unfortunately, this is the wrong approach.

            Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

            Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

            Of course, you can’t command a high price without bringing value.

            The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

            1. Hack time to accomplish more than most

            Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

            With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

            Advertising

            Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

            Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

            For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

            Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

            It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

            2. Set your own boundaries

            Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

            Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

            Here are some important traits to consider:

            • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
            • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
            • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

            These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

            Advertising

            3. Continuously invest in yourself

            Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

            You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

            Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

            Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

            Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

            It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

            4. Document the value you bring

            Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

            To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

            A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

            Advertising

            Here are some ideas:

            • joesmith.com
            • joeasmith.com
            • joesmithprojects.com

            Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

            During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

            5. Hide your salary requirements

            Avoid giving you salary requirements early in the interview process.

            But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

            The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

            Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

            6. Do just enough research

            Research average salary compensation in your industry, then wing it.

            Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

            Advertising

            Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

            Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

            7. Get compensated by your value

            Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

            Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

            Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

            You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

            The bottom line

            You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

            You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

            Featured photo credit: LinkedIn Sales Navigator via unsplash.com

            Reference

            Read Next