Signs of Future Financial Problems - as part of the expert series by GeoBeats. Signs of Future Financial Problems Here are some warning signs that you might be heading for some financial problems in the future: First off, you don't have adequate insurance. If you don't have insurance that's going to be covering seven to ten times your salary and you don't have disability insurance that covers roughly 60 - 70% of your income, you could be in for some tough times if something happens. Your loved ones are going to be in trouble or you are going to be in trouble financially. So, that's once again is the base of the pyramid, we want to keep that foundation of our financial life secure. So, inadequate insurance - big red flag. Secondly, you have no emergency reserves and no cash for emergency funds or any kind of cash reserves. That means you are spending more than what's coming in, you are just pretty much spending everything that comes in. You need some healthy emergency reserves of at least six months of your salary. So, if there is nothing there, that's another red flag, that you are not being very mindful of your finances. Number three, you have a lot of credit card debt. If you have amassed a lot of credit card debt and you can not pay that debt back within 3-5 years, you are in deep trouble. You are probably not going to be able to get out of that credit card debt for quite some time. And the rule of thumb is: you really want to try to get out of that debt in roughly three years. So, pay your minimum payments and then addition 20%, that will normally get you there. If you can't do that, you are likely going to have seek credit counseling or seek the advise of bankruptcy attorney.