Financial red flags! Does this sound familiar to you? Well, for those who’ve heard the term ‘red flags’ for the first time, let me clear your doubts. Red flags are nothing but warning signs. It signifies danger, risk, troublesome situation, crisis, which would not let you progress.

You are often surrounded by situations where progress is slow. Your financial life is not an exception to this. You need to be very cautious if your finances are waving these red flags.

# Personal finance red flags

1. You’re not sure how much money you have

It is quite dangerous if you’re not aware of your financial whereabouts. You must know how much money is there in your bank account. If you use your debit card blindly without knowing how much money you have in your account, then you may pile up overdraft fees. If this continues, then you won’t be able to achieve your financial goals and also, you’ll be wasting your precious dollars on unnecessary fees.

2. You use credit cards for buying small things

You choose to pay with credit card at a grocery store or at a gas station because you’re anxious about the due amount. Is this happens to you every time you pay the bills? If you agree, then your finances are unstable.

See also: 5 Signs your spouse isn’t financially faithful

3. You don’t open your bills and credit card statements

Are you a kind of person who doesn’t open bills and credit card statements? Yes? Then don’t! Your finances might be at risk. You might be sinking into the debt pool.

4. You don’t bother carrying debt

You already have debt and another $100 won’t make a big difference. You’re so used to it that you don’t bother carrying another balance on your credit card. Ignoring your debts will ultimately push your finances in grave danger.

5. You’re taking out loan to pay off debt

Are you thinking of taking out a loan to pay off your student loan, car loan, and mortgage? Yes? Then, wait a minute! This shows that your finances are at risk. A loan turns into debt if you’re not able to repay it with the given time. So, paying off one debt with another is a bad option.

6. You’re doing something that you shouldn’t

Taking out money from your 401(k) account would make your financial future gloomy. You’re well aware that taking out money from your retirement account to cover other expenses is not right. You still repeat it and convince yourself that it’s just a one-time happening. But, that’s not true. Ultimately, you end up in vanishing money from your retirement account. So, if you have the habit of drawing money from your 401(k) account, then you should immediately stop as it would drain your finances.

7. You’re borrowing money from family and friends

If you have the habit of borrowing money from your family members and friends, then you must try to control this habit of yours. Asking money from someone else is not a good decision. For instance, if you can’t arrange money for a picnic, then say ‘no’. Remember, every time you ask for money you’ve to return it.

# Financial red flags in a relationship

8. You’re not talking about credit card debt

It is not a big issue if your partner has credit card debt. It happens! Not discussing the debt with your partner and most importantly not trying to overcome debt is a clear sign of financial imbalance and insecurity. You should take steps if your partner is hesitant in discussing his financial problems with you. After all, your partner’s financial complications can take a toll on your finances.

9. You’re spending too much

If you are the one who spend more money than you could afford, then you're waving the red flag over your finances. It’s good if you want to do something special for your partner. But, reckless spending would harm both your finances and relationship.

10. You change your job frequently

Job loss is normal. But, what really matters is the reason behind it. You should be careful if your partner is frequently changing his or her job and blaming others for it. Find out what is bothering him or her. Is there any serious financial issue behind the constant change of job?

# Financial red flags in a business

11. You’re mixing your finances

You must keep money separately for personal and professional use. If you use the money kept for your business in paying off your home loan or vice versa, then your finances are screaming ‘HELP’.

12. You want to change outdated decor

Are you thinking of renovating your office? If so, then you must think twice before you hire an interior designer. If your office decor isn’t much important, then you should leave it as it is. As changing the outdated decor is one of the costliest red flags to fix.

13. Your employees are rude or disappearing

Your business is in danger if you have rude employees or if they’re constantly vanishing. As a business owner, you should find out the reason behind their anxiety. Unhappy employees equal to unsuccessful business and unsuccessful business means financial failure.

Are your finances waving these red flags? Yes? Then, hurry up! It’s time you should take your finances seriously.

Must read: Warning signs that you are drowning in debt

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