15 Signs You’re in Money Trouble

If you know what to look for, you can spot the signs that you're in money trouble way before it all comes crashing down. Because your behavior shows the signs earlier than your bank account does. It seems to happen so suddenly. One month you're fine, keeping your head above water; the next month you're panicked and desperate. The truth is, though, that slide started a long time ago.

The 15 signs we're going to give you today might seem like common practice in today's economy. But if you're consistently exhibiting them, you're going to be dealing with a massive financial storm in the next couple of years, or even in the next couple of months. If you can't curb your behavior and expense patterns on a small salary, earning more isn't going to help you. You have to fight against the habits that you've built up over the years, and that's incredibly hard to do. The life and financial overhaul should start right now, not when you're struggling to make minimum payments on your debts or scraping your rent together for the third month in a row.

Here are 50 early signs you're in money trouble:

Number one: The first time you run out of money before your next payday. Now, this might sound a bit wild, right? The first time, surely everyone's run out of money before their next payday, and they manage to come back relatively okay. Does running out one time doom you to a life of debt and financial strain? Well, no, it's not that dramatic, but it is an important indication of the teamwork that's going on—or not going on—between your financial mind and your behavior. There should be enough discipline to stop you from getting to that desperate point where you have absolutely nothing left in your bank account.

Once you get to this point and don't have any money left, you'll likely ask for a loan from a family member or from the bank. But this behavior, instead of teaching you to scale back on your expenses early enough, actually teaches you that every time you get to that point, you can ask for external help. Even if you have $30 in your account until payday, keeping that small cushion, that tiny buffer, teaches you to scale back and hold on to what you have. The warning signs are flashing, and you need to slow down. There should be at least 20% of your salary left in your checking account before your next payday. This is aside from your emergency fund. That 20% is the cushion that's going to stop you from stressing out about money. It's a sign you're handling your income well against your expenses.

For some people, 20% of your monthly salary in a checking account seems ridiculous—unnecessary, even. For others, it's way too low. It's up to you how soft you want your cushion to be. But there's no denying that if you're constantly hitting zero before payday, even if it's just a day or two before, then a storm is coming.

Number two: You've got a hard time saying no to good times. Life is for living, yes, but living beyond your means means a good time today can mean tough times tomorrow. When every weekend is an expensive outing and you can't resist joining every plan, you'll find yourself spending beyond your budget. We often rationalize overspending as making the most of life, underestimating the long-term financial impact in favor of immediate social gratification. If you find yourself consistently spending on nights out, vacations, or just treats because you don't want to miss out, it's a sign of trouble brewing.

It's a pattern of behavior that shows your spending is driven by social pressures or a desire for immediate enjoyment, which can outpace your financial resources. It also shows a deeper psychological validation for belonging, and it's not going to go away by earning more. Your expenses will keep skyrocketing because you'll keep wanting to fit in with the people just above your pay grade. There's a constant cognitive dissonance battle raging within you: the importance of saving versus immediate social reward.

The more one side wins, the easier it becomes for that side to keep on winning. Where's your balance? How can you say no a little bit more without feeling like you're missing out on life? That's the real work.

Number three: The moment you have a major unexpected payment. When a big unexpected bill hits, whether it's from a dentist visit or a sudden car breakdown, and you struggle to pay it, it's a wake-up call. If you find yourself pulling out a credit card or considering a payday loan to cover it, your financial safety net is not as strong as it needs to be. It's natural to focus on the here and now, enjoying your money when everything's going smoothly. Planning for a rainy day often takes a back seat, especially when funds are tight or there are more immediate, appealing ways to spend money.

This mindset of "it won't happen to me" can leave you unprepared when life throws you curveballs. The impact of a major unexpected expense can be immediate and severe. If you don't have emergency savings, this one event can push you to a financial corner and might take months or even years to escape from, depending on how you handle the aftermath.

Number four: You're fine with having just one income stream. No matter what kind of economy we're in, whether it's thriving or struggling, only having one source of income and being unwilling to work past the bare minimum is an early indicator that you might run into some financial trouble. It's not about relying on just one salary; it's about not having the drive to push yourself to do better and to get yourself out of this sticky situation. Being content with one job or one salary shows an acceptance of the status quo. It shows a reluctance to push boundaries and push yourself.

The 40-hour workweek has come under fire, and for good reason, right? Working 40 hours a week and commuting to and from work doesn't leave you much time for a side hustle or a second job. But there is some time! So balance that time with a way to get just a little bit more money in your pocket. Our dependence on one salary and one job puts far too much pressure on us. There's always a voice in the back of your head whispering that your entire life hinges on one thing: your job, and that's controlled by someone else.

Earning a second income calms that voice and gives you a chance to breathe a little easier. Don't push yourself to the point of burnout, but know that as humans, we are incredibly adaptable and we have the energy to push ourselves. We have to keep the momentum going; the more we move, work, and succeed, the more energy we have to keep going. We think going out there and kicking ass is what makes us tired, but that's not always true. Every step we take adds more fuel to our energy reserves. If you can make a second income by doing something that's different from your normal job, you open up a different path of inspiration and energy. It's when we stop for too long that this energy starts to deplete. Our ancestors thrived on being versatile and resourceful—traits that are just as relevant today in our careers as they were in their survival.

Number five: When you borrow money and don't return it. You probably never thought you would be that person. You've gone through situations with friends who've borrowed money. Not a big amount; maybe their card didn't work for dinner, or they didn't have cash on them for something, and that friend conveniently forgets to pay you back. You don't ask them for it because the amount is so small and insignificant, and maybe you don't want to seem annoying. But you do wonder, though—how could they forget? You would never do that, right? And then you become that friend.

Slowly at first, your card was declined one evening when you thought you had more money in your account. Your friend pays for you, and you promise to pay them back. But when payday comes, everything seems to go so quickly, and you have almost nothing left. Your friend doesn't ask, so you don't say anything. There might come a point where you borrow money from a friend and pay them back fully in one go. Then you do it again and pay it back in increments. And again, you pay it back in increments, and you leave out a few dollars. So it goes until you get to a point where you're ignoring their calls. It's a quick slippery slope when it starts with not paying back that first dinner as soon as possible.

We learn and become comfortable with our behavior and bad habits far faster than we realize. Creating rules for our behaviors based on our goals and values, and then sticking to these rules, is incredibly important. This is how we keep ourselves in check and make sure that we're always pulling ourselves back toward our core principles. Pay them back for the dinner truly as soon as possible.

Number six: When you take out a loan to cover everyday expenses. Taking out a small loan to cover everyday expenses can be a pretty seamless thing, so it doesn't seem like a big deal. But the moment you do this, you know that your living expenses are going beyond your income. It's rarely just a one-time thing, and the amount that you need from the loan creeps up gradually. The first time you do it, it feels like a relief—you can breathe again because the bills are paid and you've got food on the table.

But payday comes and goes, and after repaying the loan with interest, you're left with even less than before. Suddenly, you need another loan, and then another. What seemed like a one-time solution starts to become a pattern. Each loan leaves you deeper in debt with less money to cover your basic needs. You tell yourself it's temporary, that things will get better soon. But soon doesn't come, and the loans keep piling up. Taking out loans to cover everyday expenses is a clear sign of financial trouble. You're relying on borrowed money to maintain a standard of living that you cannot afford. It's a cycle that's hard to break; each loan digs you deeper into debt, making it harder for you to climb out.

Number seven: You regularly dip into your savings. Banks have the option for short-term savings accounts which allow you to easily transfer money from your checking to your savings. It eliminates those extra steps. Unfortunately, though, it also means the steps that get the money back into your checking account are easier. That constant back-and-forth transfer not only racks up extra unseen bank charges, but it also conditions you to think of your savings account as just another bank account.

Instead of jumping on the far too optimistic train by transferring a large amount into that easy savings account and being left with too little toward the end of the month, just send a little bit into that savings account. Train yourself to consider your savings as a no-go zone—the moment you touch it once, it becomes easier to do it over and over again.

Number eight: You have debt you haven't been able to make a dent on. The first bit of debt that you take on when you start working, whether it's a credit card or a student loan, seems annoying but harmless. Unfortunately, though, as you keep making the minimum payments and time marches on, so do interest rates. At some point, you look at that statement, and you see that you've barely made a dent. That can be discouraging and frustrating.

Studies have found that instead of us cutting back on expenses or trying to pay off this debt, we become disillusioned and prefer to pretend it's not there. Facing debt and understanding the reality of how it mounts is enough to bring financial anxiety to a head. But that's the only way to get through it; you have to make it go away by developing a strategic behavioral plan—not just a financial plan—but a structure and routine that helps you understand your limits and triggers. Being in debt, even badly so, doesn't mean you're going to have money problems for the rest of your life, but it does show that you're getting caught up in a cycle of reactive financial management. Bad debt and big debt is not worth the anxiety and mental imprisonment that it puts you in.

So the moment you notice your debt is getting out of control, you need to pull out all the stops to rein it back in.

Number nine: You're always following trends. It's great to be fashionable, right? It's nice having the latest tech releases and products. It's awesome to feel like you're at the forefront of culture. But trends are changing faster than we can keep up with, and there's no way to responsibly and sustainably have it all. If you place your value on what you have, now you're never going to have enough. Constantly chasing trends means you're spending money on items that lose value quickly.

Whether it's the latest smartphone, designer clothes, or new tech gadgets, these purchases can add up fast and leave little room for saving or investing. When emergencies arise or unexpected expenses occur, there might not be enough funds to cover them, leading to borrowing or incurring more debt. When you constantly buy the latest gadgets, fashion, or other trendy items, you are prioritizing short-term satisfaction over long-term financial stability. This behavior can quickly deplete your savings and increase your debt, setting you up for financial stress down the road.

Number ten: You've got no idea what you spend your money on. When you've got no idea what you're spending your money on, you've definitely lost control. Now, we're not talking about bills, rent, or the big consistent monthly expenses. We're talking about the small things: ordering takeout, going out for dinner, making small purchases—all adds up to the point where your expenses run wild. You should treat your money as something that works for you. You need to control it, manage it, and give it a job description each month; it should be performing certain tasks and duties that you have outlined.

You need to keep your eye out for those duties and make sure it's not doing things you haven't actually delegated. Because we already tend to underestimate our expenses, we remember big purchases but forget the small frequent ones like coffee, snacks, or minor subscriptions. Not tracking these seemingly insignificant expenses can result in a surprising gap between what you think you spend and what you actually spend. It doesn't mean you have to go through everything you spend on with a fine-tooth comb, but you should have a general idea of where your money is going.

You need to make yourself understand that every time you tap your card or press that buy button, it has a tangible effect on your life. Financial trouble doesn't happen overnight; it builds up gradually. Within a few months of not tracking your spending, you might notice increasing credit card balances, a dwindling savings account, or missed payments. The longer this behavior continues, the more difficult it becomes to regain control. If you're struggling with this, we can help you out through the Alux app. It's the only app of its kind designed to help you level up your life across five pillars: health, wealth, emotional wellness, relationship wellness, and intellect.

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Number eleven: You avoid looking at your bank account. Some of you might hear this and find it shocking. Who would avoid looking at their bank balance when that could mean they don't have enough money to get through the month? Well, you get a point for that one, because there are many people who do this. We're not talking about those who have so much money they don't need to worry. No, we're talking about the people who don't want to face the reality that they're trading a good time now for a stressful time in the future.

If you're hiding how much you spend from yourself, then you're heading toward a major problem. Facing your statement will help you make better decisions for the next day. It's like putting up a traffic light for yourself so you know how much you need to slow down for the next few days or weeks. The denial will always catch up with you, so you might as well face it now and deal with smaller consequences rather than later, once things have escalated.

Number twelve: You're missing bill payments even though you have the money. When you don't have your bills on autopay, you might forget to send it one month. Hey, it happens to everyone, so that's normal, right? You'll fix it the next month. The problem is, though, this shows you don't have a strong financial system in place. You're winging your necessities in life. You might be fine with your system for a long time, but when other stressors or issues you don't anticipate crop up, well, that's the first thing you're going to forget.

You need to have that system in place because you can't always rely on your future self to just be able to do it. You don't know what kind of situation you'll be in in the future. Missing bill payments because you forgot, or you're too busy or stressed, leaves you vulnerable. Whether it's using reminders on your phone or having your bills debited from your account, it is important to make those payments as seamless as possible so your main priorities are always covered.

Number thirteen: You're hoping for a windfall to solve your financial problems. One of the worst things we can do for our financial health is spending with the idea that we'll have more money in the future. Even if you're sure you're getting some inheritance, a bonus at work, or money coming in because it's your birthday, living with the expectation of this windfall is dangerous. What if something happens? What if you don't get that money that you thought you would? You cannot rely on anything but yourself here.

This mindset can lead to procrastination. If you're waiting for a big payday to solve your problems, you might neglect important financial responsibilities like paying off debt, building an emergency fund, or creating a budget. This inaction can exacerbate your financial troubles over time. It also creates a cycle of disappointment and stress when the anticipated event doesn't materialize. This can lead to feelings of helplessness and frustration, making it even harder to take proactive steps toward financial stability.

Number fourteen: You make budgets that you don't stick to. The budgets you make aren't just for decoration; no, they're a way to build trust with yourself and your financial mindset. We're very unrealistic when we first start making our budgets. You might even realize that you have more expendable income than you think, and so you'll increase the amount you add to your savings account or make grand plans with your family and friends for a few weeks from now. We often find that within a few weeks, we've completely forgotten about that budget.

Then we look at it and see how far behind we are. We throw it out and we promise we'll try harder next month. Your budget should be a set of consistent guidelines for your actions. It's a daily action plan, not a monthly one. The more you make budgets that you don't stick to, the more you lose trust in your ability to keep yourself safe. Not only do you have to be realistic about it, but you also need to remind yourself about it every day. If you're making and ignoring your monthly financial plan, then it's going to be really hard for you in the future when you want to ramp up your savings.

Number fifteen: You're an impulse buyer. Impulse buying is a slippery slope. Studies have found the act of making an initial purchase increases the likelihood of making additional purchases; it's often referred to as the shopping momentum effect. When you buy something, it creates a psychological state that makes it easier to justify more purchases. Essentially, spending begets more spending. If you buy a new shirt, you might feel a temporary boost in mood or a sense of accomplishment.

This positive reinforcement can lower your resistance to making further purchases, such as buying new shoes or a matching shirt. The initial act of spending can reduce the psychological barrier to spending more, leading to a cascade of additional purchases. Once we've committed to spending, we may feel a sense of loss if we don't continue to spend—this is related to the sunk cost fallacy, where people continue investing in something because they've already invested a significant amount, even if it's not rational. A new shirt needs a new pair of jeans to go with it, and some new shoes too. You get the picture.

If you can hold off on that first purchase for the month, it'll be so much easier to keep the momentum going. Eventually, you get to a point where you realize that it's all been weeks since you've spent money on something pointless. When you're trying to curb your spending, don't consider all of the future sacrifices you'll have to make; just think about this one: your mind is an amazing adaptable tool, and if you can overthrow that little voice just once, you will gain exponential strength over the impulse.

You know, it's all these small, seemingly insignificant habits that build up and lead to straining your finances as time goes on. Spending money is far more dependent on your behavior and mindset than it is on what you have and how much you earn. Don't look around at everyone else; keep your eyes focused on your own path. Break the patterns that you need to break, make the sacrifices where you have to, and just know that when you create these hard rules for yourself, that is what is protecting you from ending up in an anxiety-ridden financial phase.