Everyone has some kind of financial problems. It can be big or small, short term or long term, but people in general face this problem at some point in their life. But there are situations that raises serious concerns like if you earning enough, and yet you are in a financial rut. It shows that you either you are not managing your money wisely or you are not earning enough.

There might be some situation where you feel like you are doing enough, yet you are facing problems. This is the time when you need to analyze your finances and find out if you are earning enough. It is rather easy to determine whether your income is enough or not.

Here are the 5 clear signs that you are not earning enough money:

#1 Struggling to meet ends too soon

By the end of the month everyone is almost done with the earnings or are on the last bit. But, if you are struggling to meet the ends right after the fifth of every month, it shows you are not earning enough. It is not about overspending alone. If you are unable to pay the bills or don’t have enough money left for essential things like food then it is clearly showing that your income is not compatible with your requirement.

#2 You are using your Credit Card

One of the obvious signs of the fact that your income is not enough is that you are using your credit card to cover the expenses. It also means that your income isn’t enough to pay bills and bear the expenses of the important things like rent and food. If you are frequently using your credit card and your debt is mounting then you should know that your income isn’t enough. At first you may not be aware of the fact that you are using your credit card for covering your bills, but as you run up your balance the picture becomes clear. Even the small purchases over a time can amount to big debt.

#3 There is nothing to cut back on

When you are short on money the first thing that comes to the mind is to cut back on the expenses. But even after cutting the expenses rigorously you realize that there is nothing to cut back on. This is the situation that tells you that your income is not enough to cover the expenses and you need to find other ways make more money. Most of the time people think that they are spending too much on coffee or when they are eating out. So, they try to cut back on it, but even after that they realize that they were unable to save money. This is clear indication that your income is not enough.

#4 Not Prepared for Emergencies

If you are not prepared for any emergency like situation like medical expenses of sudden loss of job, then you are earning enough. Saving is one of the most important part of financial stability. And, if you are unable to save enough money for emergencies it shows that you are not earning enough money. It is important that you have a sustainable income that will take care of your basics as well as prepare you for the future. It is important set aside some money for future situations where you can at least cover for the time while you look for some other alternatives. Having an emergency fund will help you cover the expenses in the future.

#5 Unable to Reach Financial Goals

Everyone has a financial goal like saving certain amount for the retirements or for buying a car or for paying down payment for the new house. If you have been trying for very long time and yet you are unable to meet the goals, then it is a clear indication that you are not earning enough. For the best financial future, you need to save and have financial goals. It is important to reach your financial goals so that you can create a better future. Many people struggle to do that and their low income can be one of the reasons why it is happening.

What Should you DO?

Getting a new job or starting a new career can be a great option. Investing your money on something substantial is another great way to ensure that you have more than one source of money. Today, you have plenty of option and you can also turn your hobby into a money-making business. For example, you can sell hand-made jewelry on Etsy. Likewise, you can try different things and see what clicks for you. A side hustle can be beneficial for you.

The Bottom-Line

These are some of the signs that you are not earning enough. By working on these essential things, you can ensure that you have enough money for the future financial stability.

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