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We all love payday! The feeling when we see an increase in the figures in our bank accounts is no doubt gratifying.

However, for most of us, all this newfound wealth only lasts for a fleeting moment. Not sure where all your money goes to after a week or two? Here are 6 reasons why you could be struggling with your finances at the end of the month!

1. You Spend Before You Save


Spending before setting aside a sum for saving clearly spells trouble for you even before the month ends. This might result in you overspending on unnecessary items without even knowing it.

Set aside a portion of your monthly savings as your “rainy day” fund. Ensure that this fund is untouchable and use it only in dire situations, like unexpected hospitalisation or unemployment.

2. You Are Not Budgeting For Essentials

Setting a budget is one of the key steps to ensuring that you have a decent amount of savings at the end of the month. Without a budget, it is difficult to keep track of your expenses and before you know it, you have squandered your paycheck on meals, entertainment and left with a sky-high credit card debt.

Draw up a general outline of your expenses for the month, breaking it down according to essentials such as meals and transport, as well as additional expenditure such as entertainment and shopping. You don’t have to follow it strictly, but it allows you to keep on top of your expenses and ensures that you do not spend beyond your means.

3. You Do Not Pay Off Your Credit Card Debts From The Previous Month


The last thing you want is recurring credit card debts. Furthermore, each time you “conveniently” forget to pay off your credit debt from the previous month, it will only increase because of the unforgivable interest rates.

Ensure that you pay off your credit card bills timely. Even it means cutting back on certain luxuries for the month, it beats having to pay the high interest rates on top of your outstanding credit card debts.

4. Your Mr or Ms Yes personality comes out

Going out for drinks on a Friday night with your co-workers or friends is a great way to socialise and build up your network. However, if it happens once or twice a week, do not be surprised if you see your funds depleting rapidly!

Learn how to say no to certain activities or events if you find that it is taking a toll on your monthly expenses. There is always the cheaper option like heading to someone’s place for movies and games or ordering in pizza!

5. You Think You Deserve Little Treats Every Now and Then


Does feeling tired every morning before you head to work warrant a cuppa from your nearest Starbucks? Or indulging in snacks and some retail therapy every weekend just because you think you deserve a break? While these little treats certainly provide momentary satisfaction, you could actually be unknowingly spending a little too much on these “little treats”.

Self-control is really the key here. If you really need that cuppa joe every month for a “morning treat”, look for cheaper alternatives such as buying sachets to brew your own coffee or from the local hawker uncle.

6. A Combination Of The Above

Could it be the daily morning coffee? Perhaps not setting a budget? Or worst, several combinations of the aforementioned situations?

If you are regularly broke at the end of every month, it is likely that you are spending your money in more than one careless way.

Do most of these situations sound familiar? Then, perhaps it is high time to reevaluate your monthly expenditure. However, that does not mean complete abstinence from some of your favourite activities though. Shop smart and you still can afford to indulge yourself at the end of the month.


The original version of this story was published in Shopback on March 27, 2017.

READ MORE: Are you spending way too much money on retail therapy and are constantly stressed? Here’s why​ and Too scared to quit? Here are some common myths about job hunting in a bad economy​