Many people live pay-day to pay-day, and it’s usually down to their monthly income not stretching quite far enough.
Whether it’s from poor money management, the cost of living, worldwide problems and many other factors not having enough money to keep you covered can make life pretty stressful.
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It can be a little disheartening knowing that you are waiting for payday to arrive and it’s not anywhere near the end of the month, especially if you’re not lucky enough to have savings put to one side.
However, it doesn’t need need to be like this. Yes, it can be a struggle at times but making goals, planning ahead and managing your money slightly better can allow you a lot more breathing space.
Let’ have a look at some tips to help you to achieve this:
Go Over Your Finances
Before you start to make any changes to your finances, you first need to know exactly what position you are in. This way you can identify if there are any problems areas that can be addressed. Have a look through your bank statements, and latest bills and look at where you might be overspending. It’s a great place to start and you might be surprised at how bad your spending habits have got. A good thing to do is to use a spending tracker, many banks now have these available to use. Make sure you include the worst-case scenario will anything that is outgoing. If you don’t you risk your budget been out-of-whack and not a true representation of what you can live too. You need it to be livable and not to stop you from enjoying yourself and being able to enjoy life as normal.
Stick To A Budget
If you’re not already living to a budget, this could be where you are going wrong. It’s a good idea to sit down and create a budget. Go through all your finances and think about what you ‘need’ to spend and what you spend that could be adapted. Note down your income, your outgoing and expenses that are both variable and fixed. This means you will know how much you are left with after your priority bills are paid. Once you’ve figured out your budget you need to stick to it, you will start to notice a difference as soon as three months after starting it.
Make Quality Purchases
When buying things for your home, clothing, cars, etc. you should always aim for good quality. Although you may spend a little more, to begin with, if you buy good quality items they are going to have a longer life and therefore save you money in the long-run. Many people budget buy too often, and although it is good for a few items, it’s not for all. For example, buying strong beds for your home will mean they last much longer than if you were to buy cheap. You’re much more likely to have to re-spend again and again to replace bad quality goods.
Pay Your Bills On Time
Although it’s not nice to see your money come in and go out just as quickly, holding onto funds in your bank isn’t going to do you any favors other than leaving you with the temptation to spend it elsewhere. If you’ve chosen to use your credit card for a purchase, for example, it’s imperative that you pay this bill on time. You’ll end up with higher payments to make, higher interest rates to deal with and even late fees if you don’t pay them at all. This just leave you more in debt and under more pressure. If you can’t pay on time or are struggling, you should approach your creditors and other bills and explain your situation.
Always Shop Around
Unless you need to make an emergency purchase, you should always make sure you shop around. Don’t just pay the first price that you see. Regardless of if it’s a bunch of bananas or a large purchase, you could potentially find the item cheaper somewhere else. You shouldn’t think that because it was the cheapest one week it will be the next week too. Prices fluctuate and different deals, offers, and discounts are always changing. A really good way to cut costs is to limit the number of brands that you purchase in your food shop, you will often find that you can get better, cheaper and better value products that are supermarket branded instead. It can cut massive amounts off your food bill, especially if you are a brand hoarder.
It may be challenging, especially when you first start, but the sooner you start and get used to it the sooner you will start to see the changes. Do you have any other tips that you could share in the comments?
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