A Blog of a Work from Home Breadwinner. Blogging anything under the sun since college days.

7 Causes of Poor Personal Finances in Our Modern World

There are several reasons why someone might struggle financially in our modern world. The primary culprit is the fact the cost of living is higher in many parts of the world than at any other time in recent memory. Many individuals don't have family in a position to help them get started on the road to financial independence, and the result is an inability to get ahead. 


Here are some of the other reasons why you might struggle to maintain your personal finances: 

Reason 1: Too Much Debt 


Today, if you want to have an education to find a good job, then you will probably have student loans that are a significant portion of your monthly salary. For many individuals, the student loan payment is more than their monthly rent on a tiny apartment. This definitely makes life financially difficult, and it is often impossible to have this monthly debt reduced. 

Reason 2: An Expensive Addiction 


When you have financial difficulties, you might try to overcome the stress by drinking too much alcohol or taking drugs. Unfortunately, an addiction will make things worse for you because you will want to use more of a drug or drink more alcohol, often at the expense of paying your bills and saving money. Most insurance plans will cover treatment at a center for alcohol detox or drug addiction recovery, so those with coverage ought to seriously consider getting help before their substance abuse problem lands them in bankruptcy, followed by an early grave. 

Reason 3: Cost of Transportation 


Most people don't live where there is public transportation such as commuter trains, subway cars or public buses. This means that they must have a vehicle, leading to a monthly payment for the item along with the cost of insurance and an occasional repair. In many geographic regions, an employer won't hire you unless you have a vehicle available to get to work.

Reason 4: Having an Apartment 


Most adults can't live with their parents, and they may not have other relatives to live with either. This means that they need an apartment. Unfortunately, the average cost of rent is skyrocketing in most cities. A landlord will want a deposit before a renter moves in, and you must pay rent in addition to utilities such as water, electricity and natural gas each month.

Reason 5: Paying for Phone Service 


While you might be okay with only having an inexpensive minute telephone for minimal communication with others, an employer may expect you to have a smartphone with all of the extras on it so that he can communicate with you at any time. Smartphones can become expensive when an employer expects you to have extra features. 


Reason 6: Identity Theft 


If you have your identity stolen, then it can become a financial nightmare as your credit score becomes lower. An identity thief can apply for numerous credit cards or hack into your bank accounts, leading to financial devastation. While you can report these problems to the local police department and the credit bureaus, it can take years to resolve the situation. 


Reason 7: Wanting to Have Everything Now 


When you aren't satisfied with wearing clothing from garage sales or buying furniture at a charity store, you will buy everything new. It is expensive to shop for the necessities for an apartment, including basic appliances, dishes, and cookware. This can lead to applying for charge cards, and overspending for the best or trendiest items can lead to a financial overload. 

Seek Professional Help 


If you are having financial problems, then seek help from professional counselors before you begin to make more bad choices.
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