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Budgeting Red Flags: Signs Your Budget Needs Attention

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Are you trying to budget but find the money disappearing from your account like sand? I want to assure you that you are not alone. More than half of Americans carry debt.

 

There is nothing wrong with you. We live in a country that normalizes spending for every occasion and gains profit from advertising trends.

 

I know you are sick of it. You are ready to not give in to those traps and reclaim your freedom.

 

Let’s address your budget’s red flags to manage your money better:

 

Living paycheck to paycheck

 

If you are giving your money direction and you still feel like you are living paycheck to paycheck, there are two problems:

 

          1. You are spending too much. Go back to your budget and see where to decrease or eliminate spending.


          2. You do not make enough. It is time to increase your salary! You can negotiate in your 9-5, consider moving jobs, or start a side hustle.

 

Consistently overspending

 

Neglecting the budget and allowing your feelings to dictate your spending will always keep you broke. Your budget is your roadmap to help you achieve your money goals and your dream life.

 

Overspending keeps you stagnant, check-in with your budget more often.

 

Credit cards are your “emergency fund”

 

Relying on credit cards for everyday expenses is a sign that you and your budget must communicate. Credit cards are not the devil; you can use them to earn bonus points and cash-back rewards to pay for things like travel.

 

The caveat is that you must pay your credit cards in full by the due date to avoid paying interest. Spend the only money you have.

 

Neglecting your Savings AKA Emergency Fund

 

Saving is essential to cover any curve balls life throws at us. Your budget should allow you to send money to your savings. Savings are a priority because creating safety for yourself is the difference between a headache and an inconvenience.

 

Overdrawing and late payments

 

There is a disconnect between your expenses and your budget. Go over your bank statements to ensure every expense is on the budget. Double-check when you are charged so that the budget reflects this as accurately as possible.

 

It is imperative to fix this issue immediately because it affects your credit score. A missed payment can remain on your credit report for seven years.

 

No clarity on where your money goes

 

Lack of clarity about where your money goes makes it challenging to create an effective budget. Remember to always check in with your budget before spending. Ask yourself, is it on the budget? If not, put it on for the next time you get paid and wait to spend.

 

You need to improve your spending control. This starts with setting spending boundaries. If you are used to spending a specific amount each week, start by gradually cutting back.

 

Track your spending and write what you were feeling at the time of purchase. Often, times we can curve spending by calling a friend or going for a walk. Emotional spending gets us every time.

 

Constant stress and anxiety over money

 

Constantly worrying about money affects your mental health and is exhausting. If you continue to feel stressed, you must go back to your budget and update it to suit you better. Your budget helps release stress, anxiety, and guilt when spending in alignment.

 

It takes a few tries, but do not give up on your roadmap to freedom and the dream life you want to experience daily. Paying attention to the red flags signals that you know something needs attention and adjustment.

 

You got this!!!

 

When we work together:

  • I help you create a budget that aligns with your lifestyle
  • I help you stop overspending and increase confidence in your money
  • I help you address the root of your spending matters by addressing your money story

 

If this resonates with you, I invite you to work with me! I want to help you feel less stressed and anxious about your money. I want you to feel empowered to build your dream life and trust yourself. Book a sales call.

 

I cannot wait to be part of your journey!

 

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ABOUT AUTHOR
Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
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