No matter how hard you try to keep hold of it, money flies through your fingers at the speed of light. You are living from paycheck to paycheck, and some months you even have trouble paying the bills.
You are overwhelmed by debts and are wondering how in the world you can ever manage to make a budget and keep it. What follows are a few tips to help you take charge of your finances and your life.
Ask for Help
Ask help from someone you trust. It can be your spouse, a family member or a close friend. Just make sure it is someone who has a firm grip on their finances, and whom you trust completely.
Tell them about your problem and your goals. Do you want to clear off a debt? Would you like to save up for a house? Ask them if they would help you by taking charge of your finances. That means giving them your credit cards, bank cards, everything.
Now you have two choices. If you trust that person with your life, you give them your bank cards and access codes, and on every payday, they manage everything for you.
If you do not want to give them access to your bank account, leave your cards with them, but every payday you will have to get together and manage your finances. They will merely oversee the transactions and suggest adjustments where needed.
Keep Only What You Need
Once you have found someone ready to help you get back on track, sit down with them to list all the bills you have to pay in a month. That list should include the amounts to be paid and on which date the payment goes through.
Then, figure out how much money you need to survive from one paycheck to the next, which means at least enough money to buy groceries and put gas in your car.
Every payday, you and your friend will go to the bank and take out the amount you need for your expenses. That is all the money you will get until your next paycheck.
Make it last.
Your friend will then make sure that your due bills are paid, and put the difference in a savings account. Over time, that savings account will allow you to either pay off a debt or put the cash down on a house.
Fix the Unexpected Quickly
You are now starting to save. However, what happens if your car breaks down and you do not have enough saved up yet to have it fixed?
A loan can help you.
If you have a good credit score, a credit card or line of credit with your bank will remedy the situation.
Just make sure to add it to your list of bills. What if you have bad credit? You can get an online loan. You will pay more interest, but it will get you out of that jam.
Online loans are smaller than loans with regular banks, but within four months they are repaid so you can get back to saving.
Take Charge Gradually
Your friend has helped you save for quite a while now, and it is time for you to take charge. Go at it gradually. You could start by taking back your bank card and see if you can control your spending.
Ask your friend to do a follow-up with you once a week to make sure you are still on the right track and that you pay your bills on time.
Once your credit card is paid off, you might choose to cancel it or lower its limit. Once that is done, take charge of that card too. Use it sparingly.
Remember that a credit card is useful in case of emergencies or for online purchases. With emergencies, it helps you get out of a bad situation. For online purchases, use it only if you can repay the amount immediately.
Space out the follow-ups with your friend, but do keep in touch once in a while to broach the subject of your finances. It will help you keep your focus.
Saving money is all very well, but if you get no pleasure out of it, you will not keep that beat very long. Set yourself smaller goals. Once you reach them, reward yourself.
Nothing big or expensive.
It might be a night out with friends, a new book, whatever makes you happy. It needs to be something that will motivate you to reach your goal.
Revise Your Budget
A budget? What budget? Remember that list of bills you made with your friend? That is your budget. A very basic budget, but still one; keep it up to date, revise how much spending money you keep.
As time goes by, your salary, your bills, your needs will change. Your budget needs to be adapted accordingly. Once you have a firm grip on your finances, you can allow yourself more breathing room.
FIND A SIDE HUSTLE
Earning some extra money every month will help you avoid unexpected expenses in your budget.
It is all about using your passions to obtain some kind of benefit with the minimum amount of effort and investment. From selling handmade products to your family and friends to renting a room in your own apartment.
If you prefer an online side hustle, you can open a channel on YouTube or set up an online store using a dropsipping platform such as Oberlo that allows you to make profits without having a physical stock at your disposal. You can often find thousands of interested customers who share your interests.
Yes, it is possible to have financial freedom, and you will achieve that dream by following some of our tips!
Remember that taking charge of your finances is taking charge of your life. Your bills will be paid on time, you will be debt free, you will have more spending money, and will have a lump sum in your savings account.
Discussion: What other ways can you think to help those struggling with their budget? Leave a comment below.