3 signs that show you are flirting with financial crisis

shakirudeen taiwo

August 21, 2017 12:52 PM

These are habits that should be addressed to avoid financial crisis.

Financial suicide starts with a tiny from financial irresponsibility.

Financial suicide does not happen instantly, rather it built up over time.

Here are some events that may lead to financial headache for an individual.

1. Spending more than your income

Consistent spending above one’s financial capability is the first step to financial breakdown. Over-spending most time results from adopting a lifestyle that cannot be supported by one’s income level.

This habit will eventually leads to financial depression as result of huge debts accumulated in the process.

2. Taking cash/salary advance before due date

The next sequence in the series of events that would occur is taking cash advance from your employer/clients/customers before the effective date.

Since this avenue is available to meet one’s excessive spending habits, one may not know it is deepening his/her to financial crisis. Any change in rule by the advancing agent results in immediate financial instability.

3. Paying a debt by taking another loan

Another sign that shows your financial condition is bad and may be catastrophic than imagine is repaying debts by taking another loan.

Though, you are fulfilling an obligation but it is just a change of creditor and increasing financial commitment. As the condition for taking the new loans would be more strain than the one repaid.

shakirudeen taiwo