How To Survive Till The Next Payday
Part of being an adult is to be able to provide for yourself and take on responsibilities. Making a budget is a requirement because most of us cannot afford to go on a splurge and still have enough to live off from. With our finite resources, it only follows that we don’t go over our means. Sounds simple? Yes, maybe, but it’s not that easy because of some unpredictable circumstances, we need to balance our lifestyle with our goals.
Here are some tips to make it to your next payday:
First is the budget
One wrong misconception that has plagued people with low income is, “It’s not worth it to make a budget when you have so little”. I often hear this a lot when I talk to people older than me when I offer to help them create a financial plan. This couldn’t be more wrong, this is like instead of dousing the flames with water you pour gasoline around it and it spreads.
Making a budget is one of the most basic things to do in life. The word “Economics” essentially means the allocation of finite resources, this has been going on in the most basic places like our homes way before the term takes on a global and geopolitical connotation. Following your budget is key in making progress. It is a plan to achieve a goal and we don’t naturally plan to fail, so adhering to a plan increases our chances of making an improvement.
To start off, make a list of the things that you normally spend in a month. Then make an honest estimate on how much should be spent on that:
- House: Mortgage or Rent
- Credit Cards/Loans
- Utilities: Power, phone bills, Internet, etc.
- Transportation: Fuel and Maintenance
- Personal – gym, sports and interests
- Leisure – dining out, entertainment
Evaluate and adjust expenses
When you have made a list you basically have an idea of where your money is going and for how much. The next step is to evaluate your spending patterns and make an adjustment on things that are within your control. An example is if you’re ordering in all of your meals in a day, instead of making it yourself, you’re actually making your “food” bracket more expensive than necessary. Also, try re-examining your costs when using your own car or taking public transport and make the necessary adjustments. Your phone and internet plan will also be an opportunity for you to cut back on some expenses. Look for better packages that will cover most of the services that you need and is priced lower than bought separately.
Manage your loans
Ideally, it’s better not to owe anyone money. But in reality, having credit may be good for you as it allows you to get better insurance rates, easier approval on rent, avoiding high-security deposits on utilities, etc. There are many service providers that will grant you access to short-time loans for emergencies. Your financial partners at Perfect Payday provide you with a cash advance for your personal needs and they are usually paid back when you get your paycheck – sometimes they are called Payday Loans. This type of loan is easy to manage if used properly. There’s always a possibility that your emergency funds will not suffice you on a rainy day, so it’s actually good to take short time loans when the need arises.
If you are on a mortgage you can try to refinance your loan to get a better installment scheme. The target should be less than 25% of your net income. Having a credit card might be convenient, but discipline should be upheld to avoid a debt trap. Interests and fees will pile up causing you to lose control over your finances.
Consider adding another revenue stream
Taking a second job or setting up a business to add to your income is one of the best ways to increase your bandwidth. The first thing is to invest in yourself, learn a skill where you can use that to apply for a freelance job or sell something online. Having multiple revenue streams will help you stabilize your finances as you will have more than one source.
Be a smart buyer
Buying low is one of the fundamental principles of shrewd business owners. That is why they gain more because they know where and how to buy for cheap. In our daily lives, it is also important to know how to be a smart consumer. If you use a lot of one item at home, then it would be wise to buy them in bulk. However, don’t buy something, in bulk if you seldom use it, as it’ll just take a big chunk of space in your house. You can also save thousands if you purchase pre-owned stuff. These items are in good condition and still work as new. Examples are furniture, cars, clothes, and other kitchen items. The point here is that there are many ways to buy quality items without breaking the bank.
The discipline, diligence, and thought you put into implementing these tips will pay its due dividends. Don’t be fooled by easy money schemes and tricks even if those things sound really nice in trying times. The main goal is to be financially independent and get away from just living from paycheck to paycheck. But getting your affairs in order are necessary first step in achieving that goal, even if you don’t feel that much of a change in the beginning.