6 Signs You're Not Making Enough Money

One of the essential and timeless pieces of financial advice given to people is to spend less than you earn. Even among money experts, there's disagreement about which side of the equation to pay attention to: spending less money or making more of it.

Unfortunately, some people are often neglecting the income side of the equation. If you are not earning enough, you might be micromanaging your budget or cutting costs - and still, fail to see the desired results.

How do you know if you need to bring in more dollars to your bank account?

Be aware of the following signs:

1. You are Unable to Cover Your Bills

If you're deciding on which bills to pay each month, you have a problem with income. It would be best if you didn't have to choose between the monthly mortgage for your home and the electricity bill.

If you happen to be in this situation, do something quickly. Take short-term steps, such as sell your car or look for a part-time job that you can do on weekends or in your free time. What's more, think about long-term solutions, so that this kind of financial problem doesn't happen again.

2. There's Nothing Else to Cut in Terms of Expenses

When you study your budget carefully to find extra money, you're in big trouble if you cannot find anything else to cut. You have a severe income problem if you:

• Never eat out in restaurants or fast food chains but still lack the money to pay for food
• Are you already doing without a Netflix subscription or cable
• Do not have a gym membership
• Sold your air conditioner and are sticking to electric fans during summer

A bare-bones budget goes beyond downsizing your current lifestyle. It means that you stop spending on luxuries altogether and only spend on necessities. Instead of purchasing a delicious hangar steak at the supermarket, you go with the more affordable hamburger meat. It means that you won't be able to eat out even during special occasions. You don't purchase anything new in your house unless you have to, regardless of how big the discount is or how fantastic the deal is.

3. You're Constantly Worried About Money

There's an acceptable difference between worrying about how to pay for a surprise car repair and getting a stomachache whenever you think about covering the rent or paying for groceries. If your money worries prevent you from getting a good night's sleep, you're likely not earning enough from your job or business.

The best solution in this situation isn't to take sleeping pills. Address the root cause of the problem by making a sound financial plan to turn your life around.

4. You Often Run Out of Cash Early in the Month

If you've had a lousy month for several months already, your financial situation may have gotten out of hand. Running out of cash early in the month is a huge red flag that overspending is not the problem - the income you're earning is. You seriously have to look for ways to bump up your income if you believe that you've spent your entire paycheck before you receive it or enjoy it.

5. You Heavily Rely on Credit Cards to Get By Every Month

Credit cards are incredibly convenient financial tools. Despite the benefits, they offer, however, they cannot augment your income.

A significant sign that you have an income problem is that you're turning to credit cards near the end of the month to cover most or all of your expenses. If you find yourself running out of cash each month or using credit cards to help you survive between paychecks, then you mostly need to bump up your monthly earnings.

Relying on credit cards may not seem like a big problem at first glance. As your credit card minimum monthly payment and outstanding balance go up, the problem will become worse and eventually spiral out of control.

6. You Don't Have Money to Cover Emergencies.

When you're stretched each month financially, putting aside money for an emergency is difficult, if not impossible, to pull off. After all, why save money for emergencies if you don't have enough to pay for your necessities?

If you cannot handle an emergency, such as sudden job loss or a car accident, you may end up having to use your credit cards. You may eventually go over your credit card limit or accumulate debt that will financially cripple you for many years to come.

If you're having trouble making ends meet, seek help from your friends, family, or financial advisor. Work up a plan to raise your take-home pay and get out of your financial rut.