Indications that You Don’t Make Enough Money

If you are constantly struggling to make ends meet, you may be facing a combination of problems. It can be frustrating to be in a financial rut and not be able to find a way out. You may be overspending while not making enough to cover your basic needs. This can lead to real trouble. Even if you feel like you are too broke to budget, a budget can help you get back on track. You can use these timeless principles to cope with living below poverty line. These seven signs are indications that you do not make enough money:

1. You are buying majority of what you need on credit purchase monthly
One of the biggest signs that you have an income issue is that you are consistently buying things you need on a monthly basis. You need to schedule all your expenses in accordance with your income. Also, if you are running out of money during the month, or you frequently buy things on credit, then your income is most likely insufficient.

2. You Run Out of Money at the Beginning of the Month
Every now and then, you can have a bad month where everything is super tight. But, if you are struggling to make ends meet after the fifth of the month, then you are most likely facing an income crisis. Because it demonstrates that there is not as much overspending going on. If you are barely able to pay for your expenses, then it’s most likely that you are not making enough money.
3. You are Consistently in Debt (borrowing)
If you are consistently borrowing to pay your bills, then you definitely have an income problem. It is important to do something about this situation as quickly as possible. You may need to seek for an expert’s help, change your job, look for a side hustle or create a passive income to help you catch up. You should also look for ways to reduce your bills like moving to an area with lower rent or selling excess liabilities. Take steps – both short term and long term to fix this situation.

4. There’s Nothing Else to Cut
When you look at your budget to find some extra money to save and you cannot find anything else to cut, that’s a red alert. You are already doing without basic utility, you don’t spend excessively on DSTV (cable TV), you do not have a gym or club membership, and you never eat out, yet you are broke. It can be very frustrating when you are choosing between eating and paying your electricity bill. If you have cut down on everything you can and you still cannot make ends meet then you have a serious income issue. It is time to check your latest acquisition and evaluate your cash flow. Do you buy assets or liability?

5. You can’t deal with an Emergency
When your income is over stretched each month and it is difficult to put aside 20% of what you earn in an emergency fund, then chances are, you do not earn enough. Note that, if you are not able to handle an emergency without you borrowing or begging, you will eventually be in debt. If you do not have your six (6) months emergency funds set aside, then you should start taking some steps on increasing your income.

6. You Constantly Worry About Money
There is a difference between worrying about how to pay for an unexpected expense, and the annoying knot in your stomach that never leaves when you worry about how to pay for groceries or rent. However, if you can’t pay for your wife’s medical or labour cost after nine months, if you are always worrying about money, and it’s keeping you awake at nights, you are most likely not making enough money. Worries won’t necessarily fix your problem except you put it to good use by making plans that will turn your liabilities into asset.

7. You Are Not Reaching Your Financial Goals
If you are barely staying afloat and not making any progress in paying off your debt or saving and making investments, then you are likely not making enough money. This situation may not be as serious as the other signs listed above, but it is strongly recommended that you take the steps you need to change your current situation.

It’s important to add that you may find yourself not making enough money as you should when you start your first job, or first business. However, it is advisable that you address this situation before it gets worse or becomes a permanent problem.

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