Cause why you always ran into financial problems

Financial problems were well in life regardless of whether they are single or married. So what are the main reasons causing it happens?

(1) No emergency savings.  Emergency savings is important in your life. This is because you do not know what will happen in the future. Maybe you  or your own family members get sick suddenly . If you have specific savings for emergency matters, at least the burden is not too much. It can also provide space for you to seriously consider the better way for saving. But you must clever to make an emergency saving. Don’t just put all the emergency funds into saving account and wait for dividend. Maybe 1/3 from the saving could be invest to increase it. Emergency saving could help you in the future.

You need to have emergency funds for retirement too. Depends on pension or retirement fund won’t be enough in the future.

In my point of view, there’s many people have a big salary but don’t have enough emergency salary. It could effect their financial management.


(2) Not able to distinguish between desire  and needs– This is also a major cause that make you to suffer financial problems. It can be said more than 60% buyers stated that they purchased in accordance with the desire and not necessity. You must be smart in planning and spending so that it will not harm yourself in the future. Make a proper budget planning every month and follow it consistently.


You must know to distinguish between desire, want and needs. Don’t just buy because other people buy but you don’t use it.

(3) Do not know the flow of money out-Ideally, you need to know all the flows of money you spend. This is to allow you to do the planning of expenses to be done. It is a must for you to learn about cash flow to improve your financial problem.

(4) Taste of excess capacity -All expenses incurred must be commensurate with your ability. Do not be too concerned about taste as it would be harmful. Know how much you can afford and don’t over your ability to spend.

(5) It is difficult to reject the offer-Maybe you’re not a spendthrift, but you are hard to turn down the offer from the seller, especially among friends or family members. You should be wise to control the situation so that it does not burden your future. Avoid people who like to offer unknown investment such as pyramid scheme, MLM etc. Some of them just want your money and not to share the wealth.

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How about that? Maybe you have any other cause that could make you ran into financial problems. Let’s share with

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