5 signs you’re going broke

MANILA, Philippines – You don’t need a miraculous intervention to tell you you’re going to run out of money soon.

As we are 20-somethings, I’m pretty sure you’re obsessed with finding and catching signs. Are the following phrases familiar to you?

Oh Lord, should I ask her out on a date? Let me see a rainbow-colored butterfly doing gymnastics mid-air for a “yes.” For a “no,” just let me see a rainbow-colored caterpillar.

Wow, do you think I should accept this job offer? If Mr. Obama calls me on my phone right now, I would!

God, is my suitor going to be my forever husband? Let him wear a yellow Despicable Me! Minion shirt to say yes!

See? Catching signs is a common yuppie thing. It’s as common as hanging out in cafes and pretending to write novels or partying in bars and pretending to write songs!

In the case of money management, though, it’s a bit different. Your enthusiasm with regards to your lover or to your career is equal to your indifference to your bills and your take-home salary.

You want to buy matching outfits and accessories for your date, but you don’t even know if you have money to pay for them.

You want to watch a movie in IMAX but you don’t even bother to watch the balance of your bank account online.

You want to attend Rihanna’s concert which costs thousands of pesos but you don’t even want to participate in a free personal finance seminar.

Does all this sound like you? I certainly hope not! To help you get your head in the game and finally take charge of your finances, start by knowing the 5 signs of a potentially broke person.

Take a bucket of popcorn and a packet of tissue with you. This may get a bit shocking:

1. Your salary is like your fake friend.

During the start of the friendship, everything seems great. You and your salary get along well – you invite it to parties and you even spend a lot of time together. However, when a few days have already passed, you and your salary start drifting apart. Pretty soon, you’ll just wake up one day and find that your income has already forgotten you and left you all alone.

Sounds like a situation taken from your real life? I know this too – most people experience this cycle upon receiving their income.

If you can’t manage your money enough to make it last until the end of the month, you’ve got a problem.

Action: Establish a basic budget for your personal wants and needs. Here’s a template you can start with.

2. Most of your relatives (or friends…) don’t like talking to you anymore.

Do none of your loved ones reply to you when you message them on Facebook?

Don’t fool yourself – they may not be as busy as you think. Chances are, they’re probably avoiding you because they believe that you’re only talking to them to ask for money to pay for your cable bill.

Action: You can’t find other relatives since you’re tied to your family by blood forever. You can, though, start paying yourself first, your bills next, and your luxuries after.

READ: 4 reasons to pay yourself first

3. You “pay” for all your purchases with your credit card without any intention to clear your consumer debt.

You don’t have enough cash with you because you’ve apparently spent them all, but no worries! You still have your credit card – this is awesome because you think that it’s like free money, right?

No.

If you use your credit card to get branded clothes, designer shoes, gourmet food, collector’s item toys and gadgets (among others), but you don’t have any idea where to get the money for payment, how to get the money for payment, and why you should even bother shelling out cash for the payment, there’s a great chance for you going broke soon.

Action: If you can’t pay for it in cash today, there’s a great chance that you can’t pay for it in cash tomorrow, so don’t bother swiping. Also, read up on your dearly beloved credit card.

READ: 4 secrets credit card companies don’t want you to know

4. Your bank account balance is nonexistent or below the maintaining balance.

Having below the maintaining amount is actually pretty good because this means you still have an ounce of self-control to stop yourself from withdrawing everything.

But if you’re stuck with a bank account that’s constantly below the maintaining balance, your road to being broke is just around the corner.

Action: If you can’t fool yourself to save and sustain money, at least have the sense to get a passbook account from the bank branch farthest from your house or office.

READ: 12 tricks to save money

5. You have a lot of material possessions but you don’t even know why you bought them in the first place.

Okay, fine, maybe you do know. It’s because it was on sale, wasn’t it?

If that item wasn’t on sale, would you still have bought it?

Most of the time, some people like buying things to show off. Others buy them simply because they have the money. And other people? They buy things to fill a hollow void in their lives.

Action:

– If you need to buy something just to make someone admire you, you would need to buy a lot of things to sustain that admiration. Stop it.

– If you have the money, go buy something that really matters to you. Or go invest in experiences instead. Just please don’t get crazy and throw all your money away just because of a big “SALE” sign.

– You can never be contented with material things. You’ll be stuck in a never-ending cycle. That void in your life may be a new person, a new relationship, a new experience, or a new knowledge – I’m pretty sure it’s not the new Apple gadget, though. – Rappler.com

You can also read:

• 5 ‘money lies’ you should stop telling yourself by age 30
• 20 tips to survive your 20s
• 10 things to know to build your rainy day fund
• 6 things to do right now to retire
• 5 reasons to stop being a people pleaser
• 5 things lovers and investments have in common
• 7 daring ways to pursue your passion
• 5 money mistakes 20-somethings should avoid
• 13 money resolutions for 20-somethings this 2013

 

 

Lianne Martha Laroya is a financial advisor. She’s also the founder of The Wise Living, a website dedicated to educate you on money management and early investing without boring you to tears. Get your FREE copy of her basic personal finance book for 20-somethings. Connect with her on Twitter,@MsLianneLaroya“

 

 

 

No money for shopping photo from Shutterstock.