Over half of Americans admit that they have struggled financially at some point in their lives. While financial struggle may look different for each individual situation, in many cases, the reasons for financial hardship boil down to the same reasons.
If you’re frequently concerned about whether you’ll be able to cover your bills, then take a look at some of the most common reasons why that might be happening.
You’re Paying Too High Of Interest
Many people take out a loan, failing to remember that they’ll have to pay it back with interest attached. Interest is the price that it costs tomorrow. Any time that you borrow money, you’ll have to pay it back with an interest fee attached.
When looking for loans, whether you’re buying a house or a car, it’s important to secure a low-interest rate. Getting yourself into a financial commitment with a high-interest rate can keep you swallowed by debt for years to come.
If you’re currently paying off debt with considerably high-interest rates, then you should look into a debt consolidation loan or even refinancing your mortgage.
In today’s modern world, there’s no shortage of temptation around us. Whether we get an email from our favorite store advertising a sale, or someone invites us out for happy hour, our money seems to burn holes in our pocket at anytime of the day. It’s important to practice self control.
If you often find yourself at the end of the month with a negative balance, then it’s time to start questioning your purchases. Try to start asking yourself whether what you’re about to pay for is really worth it. By eliminating unnecessary purchases, you’ll prioritize the important expenses.
You Don’t Shop Around
Don’t assume that whatever rate you’re paying right now is the lowest that there is. Whether it’s your cell phone bill or a video streaming service, there’s usually a competitor out there that may offer a cheaper deal.
Even though it may seem like a pain in the neck to end your current contract and start a new one, shopping around can provide significant savings.
This doesn’t only apply to recurring payments either. anytime that you’re looking to make a purchase you should shop around for the best possible deal. Above all, don’t rule out purchasing secondhand when possible!
You Buy Online Too Much
Online shopping is a convenient alternative to going into a brick and mortar store. However, it’s easy to let your money slide through your fingers when all it takes is the click of a mouse. look at your purchase history over the last few months and add up the total of how much you’ve spent. You may be shocked to find how many frivolous purchases you made simply because it was as simple as adding to your cart.