5 signs that you are constantly short of money
If you often face financial difficulties, can’t live for a month and still not get into debt, then this means that you have serious problems with budget management. If you don’t take immediate action, you may eventually sink to the bottom of the financial hole. Some people earn quite a decent amount, but they can’t cover their basic expenses. Lack of money in such cases indicates that costs exceed income and you need to change something in your life – spend less or earn more.
To solve the problem when there is not enough money to live on, you can resort to simple tips, learn how to properly manage money and manage your personal budget. Below we will look at the most common problems.
If you don’t have enough money to live on, what should you do?
Many people, getting into such situations, immediately rush to borrow money. If you do not have enough funds until you receive your next salary, and the end of the month is not soon, then you will, of course, start asking for money from friends, relatives, or send an application for a short-term loan to a microfinance organization or banking institution. The main reason for the lack of funds is the uniform planning of their expenses until the next payday. Thus, you create a vicious circle from which you can not get out. After receiving your salary, you need to give some of the money to the person who lent you money in a difficult moment. And again, your situation will repeat itself, there will not be enough money, and you will start asking for debt again.
The solution to this problem is quite simple. You need to live for a month on the money that remains after paying debts. Of course, the first month will be hard for you, but if you limit yourself a little, you can break this cycle. It is also worth remembering that in microfinance companies and banks, in addition to the loan itself, you also pay interest for their use.
Some people think that they are the only ones experiencing financial difficulties. In fact, many people have already learned how to properly allocate their budget, and just like you, they needed additional funds for the first time. Currently, most people have a stash for a “rainy day”. If you have fallen on hard times, your salary is paid, but it is only enough to meet your needs and pay your bills. You deny yourself almost everything, but at the same time there is hardly enough money. This may be temporary. But if you see a lack of financial resources for several months, then this means that you do not earn enough. You can solve this problem by changing jobs or finding an additional source of income.
There are situations when a person already has a loan that they cannot immediately repay. Paying these bills practically “eats up” most of his earnings. Don’t have enough money, what to do — you need to hurry up and find a solution to this problem faster. Perhaps the best way out of this situation will be a second job. You can, of course, look for ways to reduce the most significant expenses, for example, rent an apartment in a less prestigious area with lower rent and start living a modest lifestyle.
Why don’t you have enough money to live on? What to do?
If there are always situations in your life when a certain amount of money is required to solve a problem, then you should take care of creating a financial cushion. Otherwise, you will return to your loans and debts. How much money you need to save for a “rainy day”. It is advisable to accumulate an amount that is equivalent to your semi-annual income. At first glance, this seems unrealistic, but if you start saving 10% of your salary every month, you will be able to save the necessary amount only after 5 years. So save more to reach your goal. For the start-up capital, an amount equal to 30% of your salary is suitable. You can use it to cover minor expenses if necessary.
The lack of financial goals is not a serious problem. However, a person should understand that if he does not have them, then he will continue to trample on one place. And even after 10 years, he will have a salary that is barely enough to live on. Do you want that kind of life? In fact, the person sets the limits himself, so it’s time to think about what kind of framework you have. First, you need to learn how to set financial goals correctly. You can start with small tasks. For example, early repayment of a loan or accumulation of a small part of your salary. Small victories and the joy of them motivate you to achieve more serious goals. To summarize, you can solve problems with money as follows:
- stop borrowing money,
- lead a more modest lifestyle,
- take care of your financial cushion,
- decide on your financial goals.
Remember that your well-being depends only on you.
Leave a Reply