A lot of us have struggled to make ends meet, even though we try and try to cut back our expenses, we somehow still manage to come up short a week before payday. So, what can we really do to stretch our money? We’ll need some discipline, and some steps to follow, along with a few tips, such as:
Make a Balance: Let’s do a little accounting here, you can make a balance that includes all of your monthly, bi-weekly or yearly earnings and put them up against your expenses (mandatory or not), that will give you a clearer perspective upon your financial situation.
Prioritize: You don’t have to live with what you strictly need only. As long as your budget allows it, you can treat yourself every once in awhile: go on a date, buy stylish clothes, video games, go on a weekend roadtrip, anything you like. Just make sure to plan ahead and don’t compromise important expenses due to these treats. Remember that saving is a crucial part of this, but we’ll get to that later.
Track your cashflow: using apps like RoosterMoney or Moni you will be able to know how much money you are actually spending every single day so you can make better decisions.
Explore Possibilities: Is there some extra free space on your schedule? Try doing another activity that earns you some extra cash. Or maybe you have a little too much stuff in your home, maybe plan a garage sale? Opportunities are everywhere, you just have to search for them.
Set Yourself Some Goals: Now, it wouldn’t be very good planning if it didn’t include some goals. After you do a breakdown of your whole situation, picture where you want to be financially at least in the next six months, for example. You can set a savings goal, like having a certain amount in your savings account by this or that date. Accomplished a goal? Pamper yourself, celebration is key. It’s important to be really clear-headed with this, since meager goals will distort your perception, and goals that are too ambitious will most likely end disappointing you and putting you in a worse situation.
A Plan of Action: Now that you know how much you count on and what you want, the next step is to determine HOW you will do it. figure out how you can cut unnecessary expenses within your necessary ones, like choosing more budget-friendly groceries, exploring other markets, transportation, it’s all up to you, remember to keep everything you do written down and prove the things you are doing work through numbers.
Now, when you have a plan that you believe will get you out of the harsh situation, you will need to follow it through with care, and try to stick to it the most possible, while still keeping a record of things you think may be improved for the next personal finance plan. As long as you know what you’re working with and where you need to get to, you will always find the means to get it done.
Have you done personal financial planning? Did it work? Let us know everything about it in the comments section.