Money issues can arise spontaneously, which is why it’s important to identify the sources of financial drainage.
If you want to have a happy and healthy life, it’s a good idea to be financially secure. At the very least, you want to be able to access a couple of thousand pounds on demand for the occasional emergency that rears its ugly head. Your car could break down. You could lose your job — any number of things could go wrong.
The problem, however, is that the majority of people are living in ‘money hell’ unable to even cover the so-called ‘basics’. What the heck is going on? Isn’t this supposed to be a rich country?
There are all kinds of reasons people get stuck in money hell. Are you familiar with any of them?
You Have Poor Money Management Skills
School teaches us how to evaluate historical texts, do quadratic equations and play team sports. But when it comes to the things that matter in life — such as managing and making money — public education is mostly silent. It doesn’t teach children the basics of money management; the temptations that they’ll face during adult life from smart marketing, or how to invest any money they make. They’re left to work it all out themselves. This somewhat cavalier attitude to financial education has led to mass illiteracy among the general public. Most people assume that their wealth is their income and that they’ll have to work forever to cover their costs until they get a pension. Kids just aren’t taught money management skills, and it’s a problem.
Your Income Is Going Down In Real Terms
When economists use the word ‘real’, they’re referring to a world without inflation. The number of pounds going into your bank account every month might have gone up over the last five years, but if it hasn’t gone up by more than the rate of inflation, then you’re poorer than you were before. If you work in the public sector, you’ll want to check whether your payment has gone up. Likewise, if you work in retail or manufacturing — areas with relatively stagnant wages — you might be wondering why your money doesn’t go as far as before. The culprit is likely inflation.
You’re Experiencing Marital Issues
Marital issues are costly. You often have to move to a different location and take out no guarantor loans to cover expenses. Ideally, you’d stay with your spouse forever, but with the pressures of the modern world, that’s not always possible.
If you are going through a challenging time in your relationship with your spouse, try to keep your relationship civil. Doing so will help when it comes to financial matters. If you’re not yet married, make sure that you’re confident that you’re making the right choice. The economic costs of error can be considerable.
You’re Still Paying Off Student Debt
Leaving university and launching straight into adult life with all its expenses can be a challenge. Not only do you have to pay all your living expenses on an entry-level wage, but you also have to cope with student debt too. Focus on paying off your student debt faster to cut your overall monthly outgoings and interest payments in the future.