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4 Grim Signs You Are Heading For Financial Disaster

This article was originally on GET.com at: 4 Grim Signs You Are Heading For Financial Disaster

Are you a wreck when it comes to managing money in fiercely competitive and expensive Singapore? While Singapore has come up tops again in being the world's costliest city to live in, it doesn't mean that every one has to be a disaster financially just because the cost of living is sitting on the high side for the average Singaporean.

Here at GET.com, we share with you the 4 tell-tale signs that could indicate whether you're on your route to financial ruin.

4 Grim Signs You Are Heading For Financial Disaster

1. You Live From Paycheck To Paycheck

Simply put, you have little to no savings. You're living dangerously on the edge every month because you have nothing to fall back on in times of financial emergency. You have terrible spending habits and you cannot manage your money properly.

Not only is living such a lifestyle exhausting for you and those around you, it brings about anxiety and uncertainty - never a good thing to have by your side.

If you're making a decent amount of money each month but you obviously have trouble when it comes to saving up, check out these money-saving tips that we have for you.

2. You Rack Up Credit Card Bills

Savvy Singaporeans use credit cards to earn cash rebates and reward points, and when used wisely, credit cards help you save money.

But when you chalk up overdue bills and balances on your credit cards, that's the beginning of a slippery slope down to financial disaster.

You've probably been spending beyond your means or paying just the minimum sum at the end of every month instead of paying your credit card bills in full. Well, that is not a smart move - the compounding interest will grow your debt sooner than you can even recite a poem.

Honestly, it doesn't do you any good to keep ignoring your bills; they're still going to be there and will only keep growing.

Here are 4 ways you can pay your credit card bills on time.

3. You Rely On Borrowing

Borrowing is a sure sign you're struggling financially.

Whether you are borrowing to splurge on luxury items such as a branded handbag, or borrowing to pay your home loan payments, borrowing isn't an ideal situation. If you have the urge to buy designer goods, you should read about the 5 Things to Consider Before Splurging on a Chanel Bag.

If you find yourself seeking out loans from your family and friends frequently, and you always never seem to be able to pay them back whatever you'd loaned, it's pretty clear cut you're on your way to financial ruin.

Not having enough money to pay for your new car or branded bag is one thing, but if you're borrowing to tide things over for basic necessities like mortgage, rent, food or even medical bills, you ought to sit yourself down and come up with a game plan to fix all these up ASAP.

Borrowing excessively and frequently isn't the way to go for sure.

4. You Invest Blindly

So, you've saved up some money for investment in the hope of scoring above-average returns to make some quick profit but wait, you aren't quite sure about the whole investment thing.

Never mind that you aren't familiar with the types of investment products, the types of risks associated with the investment instruments so on and so forth - you go ahead and plonk all of your hard earned savings with the aim of making big money.

Being gutsy is good but being ignorant (read: foolish) isn't. When you aren't sure of what you're doing when it comes to investing, it is absurdly easy for you to wind up with little to no positive returns. In fact, you might even lose all your capital in one wrong move.

Help Yourself

Want more signs that you are in financial trouble? Here are 5 signs you have a debt crisis.

If you suspect you are heading for financial disaster, the first thing to do is simply acknowledging you have a problem that needs a solution, rather than being in denial.

What do you think? Share your comments with us below!

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