When you think about your finances, how confident are you that you are making the right decisions with your money? A lot of people may have a good salary, but not everyone handles financial management well. Having a good income is a great starting point, but you also need to plan your way to financial freedom by investing and saving more. What if you are doing the opposite without realizing it?

You may feel like you are getting by well while you are actually sabotaging your financial health. Poor financial habits can sneak up on us, and, before we know it, we have put ourselves in a vulnerable position financially. To avoid this, it is best to make the conscious decision to change your financial management practices early.


There are subtle clues that indicate your poor financial management. Be it spending too much monthly, delaying payment, or getting high-interest loans, know that doing these can pave the way for money troubles. To recognize and correct your mistakes, here are four subtle clues that you are making more debt than savings.

Poor Financial Management

1. You Can Only Afford To Pay Minimum Payments

Credit card balances are meant to be paid off full and on time to avoid additional charges with interest. If the balances are growing and you find them hard to clear off, it's time to reflect on your spending habits. Being able to pay only the minimum payment means you have more debt than savings.


Carrying a balance on credit cards can hurt your finances over time, especially if with a high-interest rate. What you can do is pay everything at once and use your cards less for unnecessary purchases. You can also check the debt consolidation process, which may be a good solution to get out of credit card debt.

2. Borrowing Money To Pay Bills

Being short on cash can often not be avoided if you have financial responsibilities each month. However, if you are always struggling to pay bills and you need to borrow from a friend just to settle the amounts, then you are in trouble. Living paycheck to paycheck isn’t ideal if you want a comfortable life upon retirement. Make sure to save more for your future by managing your money right.

3. Relying On Credit Cards For Living Expenses

There’s nothing wrong with using a credit card for your daily expenses. However, if you are constantly short in cash and have to use credit cards to buy groceries or pay for Uber, then step back and assess your situation.


You might be spending too much on unimportant things and forgetting about the essentials. What you can do is set aside money for daily living expenses and keep everything on your savings account. You have to re-evaluate your daily expenses to have a clear vision that will help you achieve your financial goals. Financial management is difficult, especially if you are not properly monitoring your expenses.

4. Losing Sleep Due To Financial Stress

Do you find yourself stressing over your finances? You may even be losing sleep, which affects your work performance and personal relationships. It comes to no surprise that financial stress affects your living conditions and mental health. Many Americans are experiencing this kind of issue brought by growing debt and lack of financial management.

Some people are even under pressure and stress as they are hiding debts from loved ones. If you are in the same situation, you must start looking for solutions and make the proper moves. If you have debt on credit cards, you can pay off balances slowly until it is all gone. Additionally, you can consult a financial coach to make the right decisions and improve your money management skills.

Bottom Line

Consider these clues to get back up and make financial plans. When you are in control of your money, you definitely have control over your life. Clear your debts today and start investing. If you are on a budget, you can always look for investments that require little capital. Investing is a great way to let your money grow so you can have other options for paying your debts.