You don’t keep track of your spending
According to Donna Freedman, a personal finance expert and writer, a major drawback when it comes to becoming financially stable is not having a budget and tracking your expenses to see what goes where. You’ll never be able to improve your financial situation if you keep spending like there’s no tomorrow, but tomorrow comes too soon.
If you don’t know what you’re spending your money on, you can’t redirect the money to the things you really need. “When you know you have enough money to deal with all of your needs and some of your wants — plus those pesky emergencies — you can sleep very well at night,” she adds.
Read also: 7 Signs You Need to Rethink Your Budget ASAP
