Do you know that your finance is in danger zone? Maybe most of us don’t know about it. In this entry I’ll share 8 signs that will give you attention.
- Have you experience the situation that before buy something and you think ‘ I know I shouldn’t buy but ..’. That’s always happen from people that facing problem in their finance. He/she want to buy something but don’t know whether the decision worth of their money. The people who comfortable financially have planning on the product to buy. They don’t take much time to rethink to buy.
- You pay an overdraft fee on your checking account every three or more. The repetitive using an overdraft fee show that you will have a financial problem in the future. Check here on how to avoid being charged overdraft fee
- Pay another credit card’s balance using another credit card. Some of us have been using these methods to settle their credit card’s debt. It could help or kill you.
- Buy big items through interest free , deferred payment offers. Maybe you’ve heard the promotion such as ‘buy now and pay no interest until next year’ for household item. It look good but you will found worst scenario in next year. If you fail to pay by deadline, the interest will make your heart going faster.
- Your credit card balances not decrease. It make worst if the balance are increase the next year.
- Your mortgage payment is more than 35% of your income. It is include maintenance, house tax, etc.. If it giving you more than 35% then your finance will be in big trouble.
- You are saving less than 10% of your salary. Center for Retirement Research at Boston College calculate the savings rates for retirement living and found that 4% withdrawal rate during retirement. For those starts saving at 25 years old need to save 7% of their earnings to retire at 70.
- You couldn’t survive financially without job’s income for at least six months. Saving is need based on how long you expect to be unemployed if you lose your job. At least you need to have reserve cash as six month expenses.
Source :- Finance Yahoo
So, how about you? Do you have any sign above? Honestly,I’ve facing 1, 7 and 8 point. It is because I’m not saving enough and need to increase the value of my saving. For you, my beloved readers, you can follow this blog and get more finance knowledge with me. Maybe it will help me and you to improve our finance. If you want professional advice, find financial advisor nearest your place