Have you ever considered whether or not your finances are stable? Some people do but some people don't, and those that don't often misunderstand what they should be doing with their finances. This can be pretty dangerous. What ends up happening is you have no way of tracking what your finances are doing and when that happens, you can get very quickly very far behind on your bill payments. Fortunately, there are ways that you can get on top of your finances so that it doesn't have to be a problem anymore, you just have to know where to begin. If you can no longer afford the renovations that require somebody to use electrical estimating software in your home, then you should be thinking about where your money is going and how you are spending it. Do you understand the warning signs of financial instability? When was the last time you got on top of your finances? These are all valid questions that can help you to understand whether or not you are behind or on top of the finances that you have. So, with that in mind let's take a look at some signs that you are not as financially stable as you think you are.
You are borrowing regularly
There is nothing inherently wrong with borrowing money, if you have to borrow money every single month, that is a problem and that is something that you have to get on top of as soon as you can. If you don't do that, you're going to constantly oh other people and that is something that can be avoided. If your budget is tightly stretched, then you need to revisit how your budget is looking and what you are doing with it. That will help you to determine whether or not your budget is enough to get you through every month, not just the ones that you are behind for now.
You don't have an emergency fund
This is a pure cash account that exists for no other purpose than to help you in your most need. If you don't have an emergency fund in place right now, then you really need to start building one because if one of you or your partner loses your job, or you end up getting kicked out of your rental, what are you going to do? You should have at least three to six months of living expenses behind you, so that you are not living on the edge of financial oblivion. A single unexpected purchase or the loss of a paycheck for even a couple of weeks can really push you into a downward financial spiral. This is a spiral that you could avoid.
You are maxing out all of your credit cards
There is only so much credit that you can use before it really does run out. If you are maxing out your credit cards and you're maxing them out regularly, you're not going to have a lifeline or a safety net should you need it. A credit card that is being used as a liability is enough, but a maxed out one is one that you can't come back from unless you have some way of gathering those finances.
You are terrified of losing your job
It's not unusual to be afraid of this, but if you know that losing your job is going to put you into financial ruin then that definitely is not OK. You need to get on top of those finances as soon as you physically can, because without them you're going to find it very difficult to manage.
