Hi,
When you feel as if you are losing a grip on your expenses, it is time to act in order to reverse the trend before it does damage. Some typical red flags are as follows:
1) You find yourself sending in a little less on your credit cards each month.
2) You stop opening bills when they arrive in the mail.
3) You find yourself transferring money from savings to checking more often than usual.
4) You stop putting money into savings.
5) You start charging items you used to pay for with cash.
6) You stop the maintenance of your monthly budget.
7) You stop talking about finances with your partner.
If any of the above sound familiar to you, it is time to take immediate action to prevent financial chaos. The first thing to do is sit down and reacquaint yourself with your budget and increase the amount of maintenance you've been allotting to it.
By comparing your credit card bills for the last few months with prior months, you should get an indication in what area spending has increased. This analysis should identify whether the spending is acute or chronic, and enable you to make the adjustments to get back on track.
Tomorrow we will talk about red light budgeting for people who are in deep financial trouble.
Until then,
Alan
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