5 Money Red Flags That Might Lead You To Financial Doom

Image by mohamed Hassan from Pixabay

It’s easy to ignore details of your day-to-day such as what you ate for lunch or the automated monthly bills. However, these small things might add up quite a bit when ignored. Here are 5 common red flags you might be making with your finances; and what you can do instead.

Not Tracking Recurring Charges
If you’ve yet to even start monitoring your expenses, that should be the first step. From the basic necessities to luxurious treats, list down where your money goes. But if you’re already in the (good) habit of tracking your expenses, it’s time to pick out recurring charges such as rent, bills, memberships and subscriptions. 

You’ll easily notice that you’re being charged certain amounts regularly – and sometimes, needlessly. From late payment charges to unnecessary subscriptions, filter out where you can save. You might also want to pay extra attention to automatic monthly payments that might have increased over time without you noticing. 

Using Your Credit Card Too Much
Can’t remember the last time you used good old cash for a purchase? If you’re swiping your credit card (not debit!) even for the basic necessities, it might hint towards not having enough cash on hand to support your lifestyle. If this is you, it’s time to review your budget and increase your cash flow.

Not Using Your Credit Card Enough
On the other hand, those who are mostly paying in cash might miss out on the benefits that your credit card is offering. Not only that, you’ll not be maximising the annual fee that you’re paying for.  With many credit cards offering rewards such as miles and cash back, it’s not about finding one with the most perks but the one that has the most value to you.

If you’re a traveller, opt for one that offers miles for every dollar spent. On the other hand, avid shoppers might opt for one that offers cashback when they spend at participating merchants.

With many credit cards offering rewards such as miles and cash back, it’s not about finding one with the most perks but one that brings you the most value.

Staying At A Job Too Long
Have you been at your job for more than 5 years? While your loyalty is commendable, Forbes commented: “Staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.”

We’re not asking you to drop everything and jump ship; but to maximise your income, you might want to think about moving on.

Not Asking for A Raise
Moving to a new company might not be everyone. You might hate the idea of change or you could be the lucky ones who simply love their job. Either way, you can aim to earn more by simply asking for a raise. 

Most people won’t ask their managers for a raise, but a survey from PayScale showed that the majority of employees (70%) who asked for a raise received at least some salary increase. So if you think you’re deserving of a raise – go forth! 

Written by

Cheryl Toh

Last updated on

April 15th 2020, 4:49 pm

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