When the money from the previous paycheck has already run out (or is close to running out) and the next one has not yet arrived, life can be very exhausting. During these days, instead of focusing on work, you may feel constant anxiety and worry, even though you know your work will be paid.
What’s worse, unexpected urgent expenses tend to occur during such periods: the car breaks down, for example. Situations vary, but the unpleasant feelings are the same.
With the help of experts from Payday Depot, we will explore how to restructure your personal finances so that you can feel financial stability. Everyone can benefit from the following advice, so don’t ignore the opportunity to use them.
The truth about your money may be shocking, but you must accept it
If you truly intend to change your financial picture, you need to start not by looking for a new job or additional projects but by getting acquainted with your actual financial situation.
Yes, you know what loans you have, how much they are, and how much you spend each month. But this is surface knowledge. You need to take a serious interest in your finances: you already know about certain problems, but as long as you don’t confront them head-on, it seems like they don’t exist. This is the path to more financial mistakes. Conduct an audit:
- How much do you spend on small expenses?
- How often and in what amounts do you make spontaneous purchases?
- What are your one-time and recurring purchases?
- What is the real amount of your monthly bills?
- What unplanned expenses have you had in the last six months, and what is the average monthly amount?
You must get up close and personal with the issue to cope with it. Typically, people budget before the start of a new month and assume that everything will be sufficient. Then reality shatters due to emotional purchases and expenses that you consider unplanned, but they keep popping up from different angles.
Create a budget considering the actual spending picture
View the budget not as a limitation but as a way to control your finances. You can create a budget even if your income is irregular.
Use credit cards wisely
Credit funds are not entirely evil because, thanks to credit cards, you can often get cashback, make interest-free payments, conveniently shop online, and make strategic purchases at favorable prices, among other benefits.
A credit card becomes a trap when you use it for daily expenses instead of maintaining financial discipline. It may seem like the money on the credit card is your own, but it’s not.
In reality, it’s money you’re borrowing, and your attitude toward the balance on the credit card should reflect that. The golden rule is that the credit card works in your favor when you can fully repay the entire amount you’ve used by the end of the month.
You can always earn a little more
Even if a salary increase is impossible to obtain at your current job, you can earn 10-20% more, and this amount could be the platform that opens the path to financial independence for you. You can also plan for additional projects or start your own business for 1-2 hours daily.
Explore all opportunities to earn extra money: you will be surprised how many such opportunities there are around you.
Set goals
To overcome minor obstacles, your goal should be significant enough. It could be a plan for six months, a year, or several years. Determine the amounts you want to have in your account and how much you want to save for significant purchases or to build a financial cushion. It will help motivate you to earn more and reduce emotional spending.
The next level is to set aside your first sum for basic investments or a bank deposit. By following the rules mentioned above, you will gradually reach this step. It can open up the most attractive prospects for you.
