Money Management Problems
Money management problems are common across the United States and are not limited to just those struggling financially. Money management problems frequently lead to what is known as financial stress, which can lead to serious consequences such as depression and addiction. The following are the common management problems according to pain management specialist Dr. Jordan Sudberg:
1. Not having a budget- this is the most common problem. People tend to spend money on whatever they want, whenever they want it, and don’t remember how much the item was or how much it cost them. People need to know exactly how much money is coming in and go over each item that will be spent during a set period so there will be no surprises. Many budgeting software available on the internet is very simple to use and can help create a monthly budget.
2. Spending too fast- sometimes people spend too fast no matter their type of account or where their income comes from. Many people have more money than they are using but spend too fast because of their spending habits. People need to keep track of what they have and have not spent so there will be no surprises in the last check or when looking at their bank account.
3. Credit card debt- credit cards are often used to pay for things that regular bank accounts cannot pay for, such as fast food or entertainment. Sometimes people use credit cards to buy things that they normally would not want to buy to acquire points or rewards toward their credit balance which can go into the next purchase that they make or used towards savings or future purchases. This can lead to a big problem and is not the best way to purchase.
4. Not saving- Many people think that saving money is impossible, but it takes discipline, determination, and organization to save money. If people have time, then saving money on the side can be done with small amounts that add up over time after expenses are paid. This will help save money in the long run and prevent money problems later on down the road.
5. Lack of understanding of money basics- People who don’t understand money basics such as how to shop for loans, interest rates, payments, and how to save money are the most vulnerable to managing their finances. Many people get so caught up in everyday life that they do not take the time to understand these basic concepts and end up getting into financial trouble and debt.
According to pain management specialist Dr. Jordan Sudberg, people need to focus and change their habits to avoid these common problems or take steps to fix them. People need to set realistic goals and understand that budgeting should be done every month, not just at the end of the year. Money management is an important part of life because it allows people to enjoy life without having financial stress weighing them down each day.