Our salaries are our lifeblood, and when our salary runs out before the next one comes, it affects our general way of living greatly. There are many reasons for why our money runs out way too early.
There are a lot of ways to avoid running out of money, but one startling thought is that this is a crisis that way too many employees go through. We live in the information age where all the necessary knowledge we need can be attained with a few taps on a smartphone. It’s hard to believe that so many of us still encounter the financial pitfalls of living from paycheck to paycheck.
Now that the problem has been identified, the next logical step is to establish ways with which we can come across a solution. If you wish to make your salary last longer, here are a few steps you can take:
1. Analyze Your Own Spending Habits
If your paycheck can’t seem to make it to the next pay cycle, then there’s definitely something up with your spending habits. This is the time wherein you’ll need to perform some introspection and find out exactly what kind of spending habits you have and how these habits damage your personal finances.
Weigh in all of your financial obligations and consider your daily expenses against how much money you actually make. By creating such a parallel, you’ll be able to determine at what aspect your spending becomes damaging and adjust accordingly.
2. Create an Appropriate Budget
Creating an appropriate budget entails that you’ll be able to establish a specific set of necessary expenses on a daily, weekly, and monthly period—with every single aspect of your personal finances involved.
The more thorough the budget, the more effective it usually is, and sticking to a budget will allow you to actually save money. While creating your budget, always gear it towards your more realistic financial capabilities.
Don’t deprive yourself of certain needs just for the sake of spending less, as this normally results in even more expenditures. This is as much about proper financial management as it is about personal sacrifice.
Manage every single financial resource you have consistently and you’ll be able to live within your means and do so comfortably.
3. Say No to Credit (at least for the most part)
When given the option of paying for something with either cash or card, always opt to use cash until you’ve managed to sort out your finances. One of the biggest possible reasons your paycheck gets wiped out too early is that a huge chunk of your salary goes into paying off credit card debts. This leaves you with less money, which requires you to use the card more and adds to your already existing debt.
As you can see—depending on your credit card—too much leads to a cycle of credit and debt that you’re still not in a financial position to be able to do something about. While it may mean some belt-tightening for the time being, using cash during this time will hasten you regaining your financial footing.
4. Set Aside ‘Frugal Time’
Since your finances are probably quite a mess, you’re going to have to make adjustments beyond actual credit card use in order for your plans of financial success to turn into reality. Instead of dining out, you may want to consider packing your own lunch for work.
Instead of buying brand name products, maybe it’s time to either look for lesser known—and therefore cheaper—alternatives, or just avoid spending on these products altogether. Commuting instead of driving will save you a ton on gasoline as well as parking, and you’d actually be helping the environment.
The point of this whole exercise is that, unfortunately, you’re going to have to downgrade on most of anything until you’re at a point wherein you’re consistently financially stable. It may be unpleasant at first, but it’s necessary and the positive long-term effects are worth it.
5. Seek Out Alternative Sources of Income
Another reason, and this one happens to be one of the more common ones people use when explaining their financial woes, is that they simply don’t make enough for it to make much of a difference in their financial standing. If that is the case, then exploring alternative means of making money isn’t just a logical step, but a necessary one.
There are many ways of doing this, and the easiest (relatively) is to get a part-time job. Getting a part-time job will be an ideal way to spend your free time, especially if you’re a young, single professional. If time isn’t a luxury for you, saving up and looking into investment options may be the best step.
Either way, it’s all a matter of solving your specific problem. If your specific problem is a small income, then looking for an additional source of income will be smart.
Conclusion
This isn’t just about the money mind you. Living from paycheck to paycheck, even if you do manage to scrape by, keeps you imprisoned in your own money problems. The opportunities for growth are less and any progression seems impractical.
The phrase is “financial freedom” for a reason. Money, no matter how important or unimportant it may be to you, can grant anyone the ability to take full control of life. This control is yours for the taking, as long as you’re willing to go through the necessary sacrifices.
