Give Your Money A Job
By Victor Ochieng
If you’re one of those people who live paycheck to paycheck, you must have, at one point or another, found it a challenge handling your emergencies. In fact, some end up falling behind on bills, while others feel like saving money is out of their reach.
If that’s your kind of life, not all hope is lost. Below are some tips outlined by Ashley M Fox on BlackEntreprise.COM that can help you break the cycle:
Give Your Money a Job
You definitely work hard to earn your money, so you can’t afford to waste it. The first thing to do is to budget and track your expenditure. This gives you some important level of consciousness about your finances, unlike where you just spend based on the spur of the moment. Food is one of the areas where people spend so much money without knowing. You may want to reconsider going out for dinner and instead make food at home. Besides being healthier, it’s way cheaper. To deal with monthly expenditures on food, budget for it and set it aside at the beginning of your financial month. If, say, your monthly budget is restricted to $300, withdraw it and set it aside in an envelope in a cash box or a drawer. Strictly limit yourself to that amount and be creative with it. You might be surprised to have some to save from that kitty.
Prioritize Your Spending
The best way to give your money a job is to ensure you only spend on things you actually need. How many times have you gone into a supermarket and left with more than you’d planned to buy? Only spend on things that align to your financial goal. If you’re finding it a challenge, limit the amount of cash you walk around with to exactly what you need. Check some of the expenditure you can cut down on. Think of the things you would do away with if you got a salary cut; maybe in half.
Raise Your Income
One of the best ways to achieve financial growth is by creating extra income. You should only consider that after you’ve mastered the art of managing your current income. This is to help you avoid going into extravagance when extra cash starts trickling in. One of the ways to immediately raise some extra cash is by selling your old stuff that you no longer need. Luckily, there are platforms such as The RealReal, Ebay and Poshmark where you can sell stuff.
Change How You Look At Things
In most cases, it feels stressful during the first months after you begin properly managing your money. This is because you’ll start denying yourself some things you previously used to enjoy. However, this should only make you happy since you’re consciously putting yourself through this temporary situation for a stress free future. Don’t forget that there are people earning six figures a year yet they’re having financial troubles due to poor money management. On the other hand, there are people making only $50,000 yet they’ve got their financial lives under control.
Take charge of your finances now and turn things around.