When talking about salaries it seems like there’s never been an end, there are those who feel their salary is always low even though the nominal is above 2 digits, there are also those who feel it’s enough even though the nominal has not been trampled on the thousands of dollars.
In fact, whatever your salary is, all of that goes back to your lifestyle and how much your needs and desires.
Then, which person are you? Are you among those who often run out of salary in the middle of the month? If so, then this is the time to improve your financial planning.
But before that, let’s discuss first 5 things that indicate that your salary or income is not enough to meet your life needs.
1. Out of money in the middle of the month
Are you among those who often feel run out of salary in the middle of the month that makes it difficult for you to meet your own basic needs?
This can happen because of 2 causes, first is because your income is relatively small. Then the second is because there is an expenditure greater than income.
But you can still overcome this by increasing your income or reducing your expenses.
2. Use Credit Services as Additional Money
Credit cards or online credit services are currently being used by people who need additional funds to buy something they want.
But you need to remember that this service is one of the means of payment, not as an additional money. When using a credit service, you have an obligation to repay it.
If you still think that credit services are extra money for you, then this is a sign that your salary is still insufficient. Eliminate these thoughts so that bills don’t accumulate every month.
3. Difficulties Paying Bills
If you often feel confused when paying a monthly bill because you have limited funds, that’s a sign that your salary is insufficient. Don’t let your debts pile up because you always have trouble paying bills.
Avoid excessive debt, ideally, one family may only have a debt of no more than 30% of income per month.
4. Difficult to Achieve Financial Objectives
Everyone must have financial goals. Some want to buy luxury homes, luxury cars, prosper in old age, and many more. But when your salary is less, this indicates that you will find it difficult to achieve that financial goal.
If your daily needs are lacking, how will you achieve even greater things?
5. Does not have an Emergency Fund
Emergency funds actually serve as a back up when something unexpected happens to you or your family. Everyone should have an emergency fund outside of savings.
But when your salary is less, then you will find it difficult to have an emergency fund and prefer credit services as a shortcut. This is indeed permissible, but if you continue to use this credit service, your bills will swell every month and cause difficulty paying.