The best time to budget was probably last week. And now that you’re broke, or if you have trouble meeting all your expenses, you absolutely must track your money. Just like running isn’t just for those who are super fit, budgets aren’t just for those who have enough money. So, how can track and manage your money when you don’t have enough?
1. Be proactive. Call your creditors before they send them to you. They want to get paid, and your phone call can prevent any nasty legal issues by simply being honest and upfront about your financial situation. They might be more willing to make arrangements if you contact them first.
2. Prioritize. Life is all about priorities. Handle all the major necessities first. Put food on your table. Pay the mortgage. Pay the utilities and water. The rest just aren’t necessities. Your cat doesn’t need a new scratching post, your wife doesn’t need a new dress, and you don’t need a dozen Krispy Kremes. Sorry. Right now, it’s about priorities.
3. Cut back on your savings plan. If you have a regular savings plan, good for you. Give yourself a nice pat on the back. But after that well-deserved pat, it’s time to reduce those savings plans (for now). It’s not worth the hardship if you’re continuing to save money into retirement and long-term goals. Take a short reprieve, or just cut down on the amount you save.
4. Avoid relying on credit. Credit cards can be handy, but they are still your money. Paying off debt with other debt is dumb. It’s like eating at Kentucky Fried Chicken. The option is there, and you might enjoy it while you’re doing it, but afterwards, you feel awful and might face consequences you’d rather not want to deal with.
5. Create more income (And I can share with you, my tested platform when you are willing). Putting more money into your account is your NUMBER ONE PRIORITY at this point. It might be time to sell off some assets or arrange a garage sale. You could also swallow your pride and take a second job delivering pizzas or work in your local grocery store. It’s not permanent, and it keeps you from dire circumstances. Even if it doesn’t cover the losses, it makes the gap smaller.
6. Create a new budget. Arrange a time to sit down and fix a whole new budget. This means tightening up on each expenditure. Cut groceries, watch where you can really tighten the belt and make the changes on paper. This will help you understand your situation better and just what you need to do to get back to a better position later on.
I understand that when you’re broke, it’s not the first reaction to create a budget (I’ve been in that position before), or cut back on savings. Breathe, just breathe. After the panic has subsided, realise that there are steps you need to take that will cut your losses and make it easier to get to where you were in the first place. You’ll be glad you took action now rather than rationalise and ignore the issues.
Ever since I started the PennyWise and Show Me The Money program, we’ve helped hundreds of people reorganise their finances. The techniques I must say is simple to learn and adopt. The challenge for most people is to stay on track. Action takers have recorded massive changes in their finances, some have become financially independent and enjoy a much-improved lifestyle because we are one rare organisation that focuses on supporting you with tested systems and a closely knitted community. You are never alone.
Find out how you can reorganise your finances and kick start your journey to financial independence by joining us this Saturday, 29th April 2017 for Show Me The Money . To secure your seat, click on this link https://smtm29april.eventbrite.sg . I look forward to seeing you there.
Thanks for reading and have an awesome possum day.