While no one can look into a crystal ball and determine where they will be financially in twenty, thirty or forty years, there are some early warning signs that may indicate that the future might be a bit gloomy. The key to successfully preparing for your future is to avoid known behaviors that can be disastrous to your finances. Here are some of the warning signs that you need to look out for if you want to make sure that your financial future is safe, secure and happy.
1. How willing to go into debt are you?
There are two answers to this question, and only one of them is correct. If you are willing to use your credit card for any old thing, or you have a problem keeping your balances down, this is a sign that you may be overly willing to go into bad debt. Bad debt can take many forms, from getting a house that is too expensive to maintain, to buying a car that is over priced. Anytime you are willing to go into debt for something that will never end up paying you back, you are running a financial risk.
On the flip side of this equation, if you are willing to go into good debt, then your financial future may look quite different. Put simply, good debt is the kind of investment that will produce a return for you, whether it is in monthly payments, such as with a rental property, or long term benefits such as a regular investment. Being willing to go into good debt, and taking the time to make sure you are making a solid investment with that debt can have a very big impact on your financial future.
2. You consistently overspend.
This is a major warning sign that may indicate severe trouble in the future. If you simply cannot hold back and find yourself spending more than you earn month after month, it will add up. Whether it’s overspending on credit cards, or simply failing to notice your cash flow problem, this is a problem that has lasting consequences.
3. You have no financial goals.
This is a sign that you may not be taking your financial future as serious as you could be. Having short term and long term financial goals can help you create a better mindset about your finances. When you are working towards that goal, it’s a lot more edifying to reach it. People that take the time to actively set financial goals and actively work towards achieving them will usually have a much brighter financial future than those that do not.
Your financial future doesn’t have to be gloomy, and it doesn’t have to be set in stone. By taking the time to review your spending habits, and how you view money, you can put into action the events that will change the course of your financial future and may even fix what went wrong in your financial past.
Photo Credits: 1
Originally posted 2008-10-20 05:43:39. Republished by Old Post Promoter
Related Posts -
Learning How to Make a Budget For many of us, spending comes all too easily and before long, we find ourselves at the bottom of a very big debt hole. However, there are ways that anyone can make a budget and start planning for their future. You may not even need to make drastic changes right...... -
The Key to Successful Financial Planning Financial planning at its smallest denominator is essentially what you'd like to have and how you plan to get it. That may be oversimplifying things just a bit, but sometimes when you look at things stripped away of all of their jargon, it's a lot easier to understand it. So,...... - Review of the Richest Man in Babylon This is probably one of the most commonly used books by those who are looking to create wealth. It first came onto the scene in 1926, and shot to fame during the Great Depression as the desperate populace looked for a way out of poverty. While this book does raise......
-
How to Fail Financially Do you want to know what the quickest way is to create a mountain of debt, receive poor investment returns and how to invite year after year of tax audits? The number one way to create total financial ruin in your life in no time at all is to ignore...... -
Managing Your Finances and Your Future One of the hardest things for many of us to do is to manage our finances properly. It can be hard if you’ve had no training and you’re used to just spending freely, whenever you want. There are thousands of people out there that can’t balance their checkbooks let alone......
Related Websites -
a little-too-late advice on building wealth Everyone on the web is full of advice, and I am no exception. Once in a while you come across advice that makes a lot of sense but it's just a little too late to help you now. Here are a few good pieces of advice that are probably too...... -
Warning Sign: Are You In Too Much Debt? Why Do We Spend? I suppose the first step to understanding why we find ourselves in massive debt is understanding that we are in a country where consumption is king. How many times have we heard that our economy is a consumption economy? The trade deficit really doesn't matter! And... - Is Suze Orman Right, Can You Be Your Own Financial Planner? This is a guest post by Kent E. Irwin. If you watch Suze Orman's TV programs you will hear her comment that people can be their own financial planner. Before I answer this question, I think I need to clarify what type of financial planner I believe Ms. Orman is......
-
4 Tips for College Students Budgets [caption id="attachment_468" align="alignleft" width="240" caption="Study and Save Money"][/caption] If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting...... -
Are You Making These 4 Dieting Mistakes? The road to wellness is paved with potholes for many people and dieting mistakes are rampant. However, if you pay attention to the warning signs as you travel down that road you will know when to swerve and when to look out for danger spots. Here are the most common......
Categories:
Debt, Goal, Long Term, Personal Finance, good debt
Tags:
0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment