Do you feel poor even a day or two after you receive your paycheck? Do you feel like someone is stealing your money even when you know it’s not the case? Does it feel like your income disappears mysteriously as days go by?
Perhaps you need to ask yourself why it feels like a struggle just getting your finances in order payday after payday. There are 3 major reasons to look into.
You Have No Concrete Plan for Your Personal Finance
Struggling to make ends meet in between paydays is one of the obvious signs that you have poor personal finance planning or none at all. Without a system to monitor your money, you will definitely suddenly feel your income disappearing into thin air because you can’t trace the little amounts you spent for trivial items. So what can you do?
- Create a budget plan. Make sure to make a list of where your next income is supposed to go i.e. food, transportation, utilities, etc. This will help you determine if you have enough funds for personal savings or for buying a major asset.
- Note down all your expenses. Make a habit of jotting whatever you have been purchasing or paying for, and compare them with your budget plan to ensure that you’re not incurring expenses more than you can earn.
- Make active efforts in dealing with your loan repayment. The financial obligation will incur you additional expense in the form of interests if you fail to pay on time. So make sure to include this and all other payables such as credit cards to your budget plan and aim to bring these down to zero the soonest possible. You can take out another loan though but make sure to use a reliable loan calculator and other financial tools to be fully aware of the additional expenses you have to incur monthly for repayments.
You Have Not Attempted to Fully Reduce Your Expenses
There are many easy ways to lower your daily costs such as simply avoiding purchases of items you don’t urgently need or switching to cheaper brands without sacrificing quality. But if you have done them all and you still feel like you’re losing your money too fast, perhaps you haven’t fully assessed your options. There are creative and unique ways to further minimize expenses such as the following:
- Creating your own items instead of buying them. Examples would be making your lunch to eat at work instead of ordering from expensive restaurants.
- Rethinking the way you travel to and from work. Assess your city’s mass transport system and see if there are free or discounted rides applicable to you.
- Curbing unhealthy habits especially those that drain money. A cigarette stick or a can a beer may cost little per unit but at the end of the month, they could accumulate to a massive chunk of your income.
You’re Not Making Efforts in Generating Extra Money
Living a life of financial freedom isn’t just about reducing expenses but also finding ways to generate more money. We’re not talking about taking second jobs, although that might also help especially when you have extra time in your hands. But by simply looking around, you will find interesting ways to earn additional income payday after payday. Here are some of them:
- Assess your clutter and sell the items you don’t need. Do you have clothes that are still in good condition but you haven’t been wearing them for years? Why not sell them to people who’ll love them? Do the same thing for books, toys, electronic gadgets and appliances, among others.
- Sell old items first before acquiring their upgraded versions. Your mobile phone may quickly become obsolete because companies are releasing new models several times in a year. If you want to upgrade your phone or any of your gadgets, make sure to sell your old one first! In this way, you don’t have to take out a huge amount from your current income just to buy the latest product.
- Turn your passion into income-generating sources. Even as simple as assembling scrapbooks or making paper dolls can turn into a business venture if you have a target market in mind. So don’t underestimate the potential of your hobbies to generate additional income for you. If you need a little more capital to start your business idea, you can always take out a personal loan. Just make sure you talk to a professional financial advisor to make an informed decision.