Debt isn’t an inherently bad thing, but it can be if you don’t take it on responsibly. While everyone knows credit cards, mortgages and car loans or leases are the usual suspects of debt issues, they are far from the only ones.
Millions of Americans are currently struggling with their debt and trying to come to terms with how to rectify the situation. However, a lot of people might be looking in the wrong place when trying to figure out their debts and finances. With that in mind, this article will take a closer look at four surprising sources of debt that you might not have thought about.
A Raise or New Job
This might seem confusing, but bear with us. While getting a new job or a raise is generally a great thing, it can also lead you to a mountain of debt if you are not careful. The reason for this is that when most people start to make more money, they often adjust their lifestyle to reflect this change.
This can involve getting a new car, clothing or home when you get a new job or more money. It can be tough to not match your increased wage with increased spending. So when you get a new job or begin to make more money, you shouldn’t all of a sudden increase your spending as well. That is an easy way to wind up spending more than you bring in, and landing yourself in a lot of debt.
An Inheritance, Winning the Lottery or Other Financial Windfall
Like when you get a new job or a raise, winning the lottery or receiving an inheritance seems like it is great for your finances. However, that is not always the case. There is a large history of people misspending money when a large amount of it falls effortlessly into their accounts.
Also, if someone who isn’t well-versed in their financial knowledge gets a lot of money sent their way, they might not know what to do with it. And instead of saving it, they generally will spend more of it than they should have, and money that could have lasted them years only ends up lasting them a matter of months. As a result, you should study up on money matters and financial education by FastCash.org.
Having a Child
Having a child is supposed to be one of the greatest joys a person can have in the world. However, there is no denying that having a child is incredibly expensive and can lead to debt if you’re not careful. It can cost thousands and thousands of dollars a year to raise a child, money which many people simply do not have.
Of course, we’re not saying to never have children, we just want to make sure that you are aware of the financial impact of having a child and raising it. If you are struggling financially, and if at all possible, you might want to get that figured out before bringing a child into the world.
In our busy lives in the modern day, many of us simply do not have time to take a few hours and cook up a nice meal. As a result, many people are eating out at restaurants multiple times a week. While this is fine every now and then, it can very quickly become a bad habit and end with you going into debt, if you’re not careful.
Those $10-$15 meals can add up real quickly and you can easily spend hundreds and hundreds a month without even realizing it. Instead of eating out, you should find the time to cook meals to take to work and/or meal prep once a week and make food for the entire week. Not only will it likely be more healthy, but also cheaper.