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Here are four of themost important signs you should watch out for.
You should spend another 30% of your paycheck on fun items, like restaurants and vacations.
What happens when you overspend on luxuries?
Little by little, you start to reduce the amount you put in your savings account.
it’s possible for you to fix this problem by automating your savings.
Thats because your credit score depends, in part, on your credit utilization rate.
Your credit utilization rate is the percentage of your credit limit you actually use.
If you overuse your credit, you could see your credit score drop.
In fact, even one or two big credit card purchases could impact your credit score.
Fortunately, you could address this issue pretty easily.
Make it a habit to check your credit score and credit utilization rate.
Sure, its fun to feel carefree instead of fretting about every dollar.
But over time, experts say that monitoring your spending is the best way to keep your finances healthy.
Tracking your spending lets you see exactly where your dollars are going.
High credit card balances can reduce your credit score.
They can also increase your debt-to-income ratio, which hurts your chances of qualifying for credit later on.
How to solve this problem?
venture to discipline yourself by paying for your luxuries with cash or a debit card.
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