10 Key Signs You’re Struggling Financially & How To Get Back on Track

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Struggling to cover monthly bills or watching your bank balance dip into single digits is stressful, but financial trouble doesn’t always start with a major crisis. You don’t have to be completely broke to be on the brink of disaster. The key is knowing the warning signs before things spiral.

Some signs are obvious, others are easy to miss, but all of them matter. Here are 10 key signs you’re struggling financially, and some ways to get back on track.

7 Major Red Flags of Financial Dysfunction

If even one of these applies to you, it’s time to take action:

• You have too much debt relative to your income.
• You don’t know how much debt you owe.
• You only make minimum payments on credit cards.
• Your credit cards are maxed out, and you’re out of cash.
• You’ve been denied for loans or credit.
• You have no emergency savings.
• You lie about or hide your finances.

These aren’t just warning signs — they’re flashing red lights. However, there are often more subtle indicators of trouble ahead.

3 Subtle Signs You’re Slipping Into a Financial Crisis

It’s not always obvious. These quiet money habits can be just as damaging.

You Avoid Bills and Bank Statements

People with a firm grasp on healthy household finances don’t behave like ostriches with their heads in the sand. If you ignore your statements or leave bills unopened, it may feel easier — but it’s a sign you’re in denial. Avoidance won’t fix anything

You Rely on Small but Frequent Loans

Regularly borrowing small amounts from friends or family, even if it’s just “until payday,” points to ongoing instability.

Your Fixed Expenses Eat Up Most of Your Income

If a lot more than 50% of your paycheck goes to rent, bills, or loan payments, you’re walking a financial tightrope. Consider budgeting methods like the 50/30/20 rule to regain balance.

How To Get Back on Track

If any of the warning signs you’ve just read about ring a bell, don’t panic or beat yourself up — just concentrate on what comes next. Here are a few tips to consider that will help you recover.

Evaluate Your Spending and Adjust Your Budget

Step one is to analyze your spending and identify opportunities to improve your habits. No matter if that means cutting out unused subscriptions or reducing the number of times you go out with friends to dinner, movies or for coffee every week, you need to create a more streamlined budget.

Spend and Save Mindfully

The second step is to identify your essential versus non-essential expenses and allocate your income accordingly. This doesn’t mean frugality has to come at the expense of enjoying life; it just means you need to be more mindful of your daily spending and saving habits.

Establish an Emergency Fund

An emergency fund is the foundation of sound financial health. Without one, you’ll have to take on debt to manage unforeseen expenses. Most money experts or financial planners would advise you to have at least three to six months’ worth of expenses set aside in your emergency savings account.

By saving regularly, no matter the frequency or amount, you’ll have the financial flexibility to focus on your financial goals without being sidelined by financial shock like job loss or a hospital stay.

The bottom line is that financial trouble often starts small. Whether the signs are glaring or subtle, noticing them is the first step to turning things around.

Andrew Lisa contributed to the reporting of this article.

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