Are you bad with money? Don’t worry, most of the world is. Living from paycheck to paycheck is common for people who are in low-income or medium-income families. This usually happens as a result of bad spending habits or neglect for your budget. You could be living a lifestyle that just isn’t sustainable, or perhaps you’re drowning in debt due to past mistakes and you’re struggling to clean your history.
Whatever your situation is, here are a couple of general finance tips that will help you survive till your next paycheck, and also help you break out of that vicious cycle.
Saving money is more difficult than it seems. (Source)
Record Incoming and Outgoing Money
First, make sure you record your incoming and outgoing money. To make this easier, you can use personal finance software that can be accessed on the internet or on your smartphone. These types of software will help you record every bit of money that comes in and goes out of your bank account, but it’s important to take some time each day to record all of your transactions. For this to work, you need to be honest with yourself and note down every single expense.
Make a Budget for the Month
With your personal finance software ready, you can now create a budget. This typically involves subtracting all of your monthly expenses from your pay so that you have some money left over for luxuries. Your budget should rarely ever change, and it should be carefully used for necessities.
Pick Something to Put Money Towards
People often recommend saving money, but it’s a fairly pointless thing to do without goals. After all, money that sits in your bank account will accumulate tiny bits of interest that are overall not worth the wait. As a result, it’s best to put your money towards something, even if it’s a future goal. Perhaps you could save for a house deposit or maybe you could invest in something. Either way, have a goal for your money so it’s easier to save.
Breaking out our savings is the last thing we want to do. (Source)
Get Your Priorities Straight
Try and remind yourself of your priorities. Do you really need to go out with your friends this Friday night, or could you save that money and instead put it towards your electricity bill that you’re behind on? Practicing good habits will get you far when it comes to money, and this can be done by setting your own priorities.
Understand When There’s an Emergency
Of course, if there’s an emergency then it should be your number one priority, but what if you don’t have the money to pay for it and need to wait for your next paycheck? Payday loans online can help you source the money you need for an emergency repair such as your car breaking down or a part of the house that needs immediate fixing.
Lastly, don’t overspend. With the holiday season coming up, it’s natural for us to overspend on things like Christmas presents. Be more frugal with your presents and don’t spend too much money just because you’re scared of appearing cheap.
Featured Post – Please see my disclosure page for details