The things you do with your money today affect your financial future not only tomorrow, but years down the road. The following are 4 signs you might be headed down a bad financial way and how to make a change:

1. You do not follow your income or savings

If you do not know how much you make and expenses, you do not really know what’s going on with your finances. To spend wisely and save money, you should know that you spend less than you make. If you spend more than you make less than a month and make you another month, things might even end, but you still know how to budget. Budgeting allows to spend less than you make and therefore save more money for your future.

2. You dive into your savings frequently

You might be a good screen, but if you dip into your savings often either pay bills or buy fun things you want, you really save money in the end. Continue to save money, but the stop dipping into it to pay for things. If you spend more money than you make each month, you need to adjust your spending.

3. You think being in debt is not a big deal

You might feel that way because many people are in debt, but that does not mean it is correct. In fact, debt can ruin your credit, which can make it difficult or impossible to buy a house, a car, or even rent a place. Many places do credit checks to ensure that you would be sure to rent or sell. If your story is not good, they may turn you down. The good news is that you can fix your credit and get back on track.

4. The loan money that you and will never be paid back

If you are willing to lend money to people who have never paid you back, you’re a sucker. They know you’re a sucker, too, and that’s why they continue to ask you for money. Whether a brother or a best friend of 20 years, if you lend money and they never bother to pay you back, stop paying their money. Yes, it will be hard to say no, but you need to protect yourself and your money.

Learning to be financially wise not rocket science, but it will create new habits and learn to say no. Do not worry though, once you see the results of your new habits, you will be motivated to continue on your new path.

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