Financial Signals You May Be Struggling In 2015

The holiday season is thankfully behind us. For many of us we are now dealing with the credit card statement in the aftermath of a good holiday season. When you look at your credit card statement you are probably wondering how much money to cut a check for and perhaps thinking it is time to reevaluate your finances and your budget.
We found a good article on financial planning at with some good tips for finding ways to save money in 2015.

We tend to spend more then we should, and we also spend more than we have by utilizing credit. Americans today utilize credit more than ever before but the alarming trend is the sheer amount of debt we Americans are carrying, especially credit card debt. The average American holds between $5000 and $7500 in credit card debt. Besides credit card debt most of us have many other forms of debt from education loans, car loans, leases, mortgage or rent payments, cell phone bills, cable & Internet bills, utilities, installment loans and more. With so many types of debts we carry how do we know if we are spending too much or not saving nearly enough? If any of the following applies to you it might be time to re-evaluate your finances, spending habits and budget.

* Revolving credit card debt:

If you are carrying credit card debt month to month, that is not paying off the entire balance of your credit card the month it is due than you likely are spending too much. If you are carrying over credit card debt from month to month this is known as being a credit revolver. When you carry debt month to month on your credit card chances are you paying unnecessary interest payments with the exception being if you an a 0% introductory offer.

* You have to little saved for retirement or nothing saved for retirement:
One third of Americans have absolutely no retirement savings and are relying on social security, which will not provide for all of your needs in retirement. You should be saving at last 10% of your income each and every month towards retirement.

* High housing costs:
If you are paying 28% or more of your total net income on housing be it rent or mortgage you are paying to much. If you are renting consider buying, If you are renting consider moving if you fall into this category.

* Transportation costs to high:
You should never be paying more than 15% of your income on transportation including gas prices. It may take awhile to figure out your vehicles fuel costs per year but it is well worth finding out. If you are paying more than 15% of your income towards a car loan, lease plus gas and insurance it is too much. Look for ways to cut down with a cheaper car and a car that has better gas mileage.

* Eating out to often:

If you eat out often and cook less than you are throwing money out the window. If you eat at home more often or pack your lunch you can save as much as 30% of your income depending on how often you eat out. This is not to say never eat out but eating out every night will for sure hurt your finances. The same thing goes for coffee.

* You do not know or follow the 50-20-30 rule:
A good rule of the thumb for financial success is to use the 50-20-30 rule which states the following: You use 50% of your income for necessary expenses like rent, food, utilities, savings etc. You use 20% to pay off debts and the final 30% can go towards lifestyle choices and entertainment.

If you fall into any of the above categories you may have financial issues and need to re-evaluate your finances.

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