In an era where the cost of living is high and the income is stagnant, leading a happy financial life is nothing less than a dream for the millennials and baby boomers. Still, everyone can achieve this dream as long as they stay disciplined and frugal.
Unfortunately, millions of people are not financially disciplined in our country and struggle to make ends meet every month. Around 59% of people are living paycheck to paycheck. And, according to a survey conducted by Bankrate.com, 29% of people have more credit card debt than emergency funds.
People are either ignorant of their pitiable financial state or are not ready to accept it. Some people are not even aware of the fact that they are sabotaging their finances. Such is the dreadful condition of our country.
Spending sleepless nights worrying about your financial problems is one thing. But sleeping peacefully at nights without being aware of the fact that you’re sabotaging your financial life is a dangerous thing. You can end up getting bankrupt one fine day.
No one with a sane mind would want to sabotage his or her financial life. But how can one know that he is sabotaging his financial progress? What are the tell-tale signs? Let’s find out.

1. Not creating an emergency fund:

Be rest assured that you’re putting your financial life in great danger when you don’t have an emergency fund. According to a survey, 44% of people don’t have money to cover an unforeseen $400 expense. They have to either borrow a payday loan or have to sell a few expensive items. If you belong to this category, then do understand that you’re just one step away from a financial crisis.
An emergency fund is a must for everyone. If you suffer from a chronic medical issue or lose your job, then you can use the emergency fund at that time. You don’t need to touch your retirement funds or swap your credit cards.

2. Making only minimum monthly payments:

You’re walking on a dangerous financial path if you carry a balance on credit cards. Paying only the minimum amount on credit cards sabotage your financial life. You would have to pay a huge amount on credit card interest, and that would push you towards debt gradually. Moreover, carrying a balance can pull up your credit utilization ratio and hurt your credit score.

3. Accumulating too much debt:

Are you immersed in high-interest debt like credit cards or payday loans? If so, then there is no doubt that you’re sabotaging your financial progress. You have to pay a substantial amount on the interest rate instead of saving it in your retirement savings fund. You can’t invest and increase your net worth.
If you owe $30,000 on credit cards and have to pay a 25% interest rate, then you have to pay $7500 annually on interest. How will you progress financially in such a circumstance?

4. Not asking for a pay hike:

It’s tough to make financial progress without a boost in your income. You need a fat paycheck to consolidate debts, build an emergency fund, buy a home, and have a nice family vacation. If your boss is good, you’re likely to receive a fair performance appraisal, and a decent pay hike every year. But what if your boss is forgetful? Will you wait until someone reminds him or will you take some steps yourself?
According to statistics, 70% of employees receive a pay hike when they ask for it. But, they should have a good track record to qualify for a decent pay hike.
If you have not received a pay hike for a long time, then ask your boss for a pay hike. Make sure you ask for a hike based on your consistent performance, hard work, and remarkable results. At the end of the day, the company wants ROI.

5. Not negotiating for a lower interest:

Are you paying a high-interest rate on credit cards? If so, then call your creditor and ask for a lower interest rate. Usually, most creditors agree to reduce the interest rate on credit cards for loyal customers. So if you’re already in debt and you’re not asking for a lower interest rate, then you’re sabotaging your financial progress.
The average interest rate on a credit card is 17%. If you’re paying more than that, then you should negotiate for a lower interest.

To sum up,
If you see any of these signs, then you’re ruining your financial life without even realizing it. To get back on the right financial track, plan a budget, save dollars, repay debts, and invest money.