1. You’re carrying a credit card balance from month-to-month
If you have a high credit card balance and you’re paying just the minimum each month, you can end up carrying this balance for years while paying a lot in interest. You might also be tempted to make more purchases on this card since it already has a balance.
The fix: Try to make double payments and stop using the card until the debt is paid off.
If you can’t do that, consider transferring your balance to a MCCU Visa® Signature Credit Card – you’ll enjoy a fantastic low intro rate for the first 20 months and be able to pay down your balance faster! You can only get the low intro rate when you apply with a MCCU employee by April 30, 2019 – give us a call during business hours and we’ll be happy to help you!
2. You stress about bills
Monthly bills should be fixed into your budget. You should be able to pay them easily without any stress.
The fix: Take a look at your monthly budget and find ways to cut back. Maybe make the daily coffee run once a week, or watch a movie at home instead of at the theater.
3. You can’t save 5% of your monthly income
If you can’t put away at least 5% of your monthly income into savings, you may be living beyond your means.
The fix: Again, trim your expenses and restructure your budget to include at least 5% for savings.
Also check to see if you’re paying a fee for your checking account. If you are, consider opening a Free Checking account at MCCU – no monthly fees and no minimum balance to maintain.
4. You don’t have emergency and rainy-day funds
Ideally, you should have an emergency fund to cover major unexpected expenses, and a rainy-day fund for small expenses you can anticipate.
The fix: Start building your funds now by putting away as much as you possibly can each month. If you save as little as $50 a month, you’ll have $600 in a year!
5. Your mortgage payment eats up more than 30% of your monthly income
Most financial experts agree that your monthly mortgage payment should not exceed 30% of your take-home pay.
The fix: You have two choices here:
Find ways to boost income. Seek a raise at your current job, freelance for hire or find another side hustle for extra cash.
Scale back your mortgage payments or consider a refinance. If your mortgage is crippling your budget, consider downsizing to a smaller and cheaper place.
6. You lease a car you can’t afford to buy or finance
Can you afford to pay for or finance your car?
The fix: Downgrade your vehicle to one you can afford. MCCU has low rates on car loans, plus our auto-buying partner Autoland may be able to find you an affordable pre-owned car you can purchase!
7. Your financial decisions are influenced by your friends’ spending habits
Thanks to the hyper-sharing culture of social media, the pressure to keep up with the Joneses is stronger than ever. If you find yourself making financial decisions based on your friends’ choices, you’re likely spending more than you can afford.
The fix: Stop looking over your shoulder and keep your eyes on your own life and your own wallet. You’ll be much happier when you do.
If you’re in over your head, MCCU can help! Stop by or call us today and we’ll be happy to help you!
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