7 Major Signs of Financial Irresponsibility and How to Avoid Them


Financial responsibility is a common topic that you’d encounter in money forums and blogs nowadays. You can find dozens of advice on how to become financially responsible. This is good, but you should turn your sights to the signs of financial irresponsibility. These poor financial habits are the ‘bad apples’ that you must seek and throw away.

Check out the major signs of financial irresponsibility:

Uncontrolled Spending


We all live in a modern consumerist era. In other words, we are all consumers. However, there’s a thin line that separates average spenders from over-spenders. Hence, the first sign of financial irresponsibility is uncontrolled spending.

If you like buying stuff that you don’t need, then you should curb the habit as soon as you can. Uncontrolled spending will lead to financial compromise and lesser spaces in your own home. Whenever possible, you should cut corners because there’s no way of predicting when emergencies would occur. To monitor your spending habits, you can use a simple online or offline tracker.

Tracking your expenditure shouldn’t be a bummer though. You can keep the activity as fun as it can be by marking small personal achievements. Also, don’t feel too bad if you’ve spent money on a fancy meal. Consider it as a reward for your hard work.

Lack of Financial Tracking & Documentation

Tracking your finances can be challenging enough if you have many things to juggle every day. Without an effective tracking method, your financial items and transactions will be out in the open. You won’t know how to make adjustments, and you will, practically, choose the first options that would appear in your lap. This can spell financial disaster in the long run.


When it comes to financial documentation, you don’t have to worry about endless stacks of paper and cringe-worthy numbers. Everything can be automated nowadays! A simple method is to whip out an Excel file and do your simple numbers there. Nice and easy. If you want to save time, you can even ask someone else to do the task for you. You might end up paying, but at the very least – you managed to save time.

Another good habit to adopt is to keep all receipts and invoices in a secured stash. These documents will be useful someday for tax filing and other complicated financial transactions.

Applying for Too Many Loans


It’s not bad to apply for a loan. Many people are doing it – even large-scale corporation owners. The real situation is when you’ve applied for too many loans. One or two small loans are enough, but three is too much.

Instead of choosing multiple small-time lenders, you should check out a detailed list of licensed Singapore moneylenders. Perhaps you can find one reputable lender who will give you the loan that you actually need. It’s very likely that you might end up getting a personal loan because this is the most flexible option.

Remember the golden rule of borrowing money: borrow money and put it into a growing venture. Don’t borrow to buy stuff! This will drag you into a financial sinkhole that you can barely escape from.

A Clear Focus on Liabilities

The tycoons of the world have emphasized the importance of income-generating assets. Everyone should aim for building assets, but this is difficult in practice. Instead, many people acquire liabilities which have drained their accounts further. If your lifestyle is focused on acquiring liabilities, you’ll have a difficult time ahead.

Realistically, you cannot avoid liabilities. Such fact is related to the idea that we are all natural consumer of things. Still, you can exert a high degree of control over your urges. Perhaps you don’t need that cable subscription now, or you can jog around the neighborhood instead of opting to a gym membership.

Always remember this simple mantra: assets come first. This will help you create the right financial mindset and increase your sense of financial responsibility.

Credit Ignorance


In a fast-paced, digitally oriented world, almost everything seems to run on credit. Just imagine the prevalence of credit cards around the world. Credit is all about convenience and the hyper-valuation of money. With this state of reality, you shouldn’t be a ‘credit-ignorant’ person.

Credit ignorance is the act of shrugging off credit responsibilities or turning a blind eye. Even a  reputed licensed moneylender in Singapore like Cash Mart will assess your credit status and determine if you are worth the transaction. Fortunately, there’s a wealth of ways on how you can be ‘credit-responsible.’

First, you must know your current standing. This can be done online through the means of credit assessment firms. Second, you can work with a financial institution to build your credit over time. Some banks have credit builder programs that you can try. Lastly, you might want to consider purchasing smartly. If you have a credit card, pay your balance on time and be active with reward/incentive programs.

Just be careful – If you can’t settle your credit obligations, your finances will eventually suffer.

Signing Up for Get-Rich-Quick Schemes

When life gets tough, people go for get-rich-quick schemes. You might be enticed by a guy lying down on the beach sipping apple martini. Or perhaps you saw a guy swimming in cash while surrounded by expensive cars. Such visuals will truly hit your ‘pain points.’

If you’ve fallen prey to these schemes, then you need to stand back and do your research. You should bear in mind that there are no shortcuts to personal finance. Perhaps what you can do now is raise your income barrier, secure a small capital, and re-analyze your plan. Get-rich-quick schemes are financial bombs – avoid them!


This brings us to the last point…

No Goal-Setting in Mind

A successful and financially responsible person is driven by a primary goal, not a primary impulse. This main goal is connected to smaller monthly goals that can be tracked easily and effectively.

Here’s a quick activity. Get a notebook – any notebook or small notepad will do. Examine your goals and determine if adjustments are needed. Do you need to limit your expenses or cut corners? Or maybe you need to add another income stream? Keep writing on your little financial notebook, and you will see the road towards a better future.

Last Remarks

Pinpointing the major signs of financial responsibility is the easy phase. It will become more difficult as you try to change these habits over time.

Do not give up! Financial responsibility is an uphill battle, and you must always remember that the view on top is worth the hard work.