Tashkent, Uzbekistan (UzDaily.com) —  The absence of money is not always due to low income; sometimes it results from poor personal finance management.

Experts from Alpari outline signs that indicate you may struggle with planning your income and expenses:

1. Money Drains Away: If you often feel like you haven’t bought anything significant this month but your wallet is empty, it’s not a mystery. This situation usually stems from not planning your budget in advance, leading to unnecessary spending on things like dining out instead of important expenses like loan repayments or savings for a vacation.

2. Lack of Income Awareness: If you don’t have a fixed salary and rely on different gigs or freelance work, you might find it challenging to track your income. Understanding how much money enters your account monthly is crucial for managing expenses.

3. No Spending Plan: Good budgeting requires allocating your salary to various essential categories at the beginning of the month, including mandatory payments (like groceries and utilities), savings, investments, education, health, and leisure.

4. Ignoring Mandatory Payments: Frequently missing payment deadlines for bills or loans indicates poor financial management. This can lead to penalties, service disconnections, or even legal issues with banks.

5. Constant Financial Stress: If discussions about money make you uncomfortable, and you frequently worry about your financial situation, it’s a sign your budget is disorganized and needs restructuring.

6. Living on Credit: While taking loans for necessary purchases isn’t inherently bad, making it a habit to rely on credit for unnecessary items can lead to severe financial repercussions, including high interest and diminishing monthly income due to repayment obligations.

7. Lack of Savings: Savings are vital for unforeseen circumstances, such as job loss or reduced income. They can enable early retirement, starting a business, or living without financial constraints.

8. Budget Misalignment with Financial Goals: If you aspire to buy a larger apartment but spend excessively on luxury dining and shopping instead of saving or planning for a mortgage, you’re misaligning your budget with your financial objectives.

9. Frequent Impulse Purchases: Impulse buying is a sign of poor financial planning. If you spend freely without allocating a shopping budget at the beginning of the month, it may lead to overspending.

Take Control of Your Finances

The consequences of poor financial planning can be severe: unmet financial goals, chronic money shortages, reliance on debt, and lack of a financial safety net.

It’s never too late to start budgeting. Begin by tracking your expenses to see where your money goes, then create a list of your income and expenditures. Next, define your financial goals and start setting aside money for savings.

Importantly, don’t deny yourself essential pleasures. Financial planning should not mean sacrificing what you love, like favorite foods or social outings.

Think of budgeting like a diet: it may feel good initially, but if too restrictive, you may eventually abandon it. A sustainable budget allows for necessary expenses while limiting impulsive spending.

There’s no one-size-fits-all approach to budgeting. Experiment with different methods to find what works best for you.