Are you stuck in the paycheck to paycheck cycle? Running out of money mid way through or not being left with anything to save can be stressful. You can find yourself borrowing just to get through, and racking up debt. If you have any unexpected expenses come through, it can be a huge worry where you’re simply not able to cover it. Here are some proactive ways you can break the cycle.
Get out of debt
Debt is incredibly expensive. The interest rates on things like credit cards, loans, store cards and car finance are often extortionate. Getting out of debt would mean no more large interest payments each month which would free cash up for other things. Perhaps you could sell things you no longer use to raise money, or take on some extra shifts at work. If you’re badly in debt, a debt charity can help you by getting interest rates frozen and monthly payments reduced. Either way, getting out of debt or finding a way to manage it better can save you tons of money from your monthly budget and make your paycheck go much further.
Progress in your career
If you’re not earning enough money in what you do, is there an opportunity to progress? For example, if you’re in the nursing industry taking a dnp fnp program would qualify you to apply for higher paid roles. If you don’t have a degree at all, gaining one could open the door to much better paid careers. If you feel as though you’ve been working hard and deserve a promotion or pay rise, you could ask for one. Highlight to your boss the reason why you deserve it- not why you need it. It’s always an option to consider and a boost to your salary could make thing easier financially.
Start a side hustle
A side hustle can be a great way to earn a little extra money, which can be really helpful if you keep getting caught short each month. You could monetise your blog, and look into ways to gain sponsorships and advertising deals. You could sign up to a freelancing website and do some work on here in your spare time. You could even start up your own home business. There are loads of directions you could go in with this that don’t require much money to start and could earn you a good chunk of cash each month. An extra source of income can help you to stop getting into the red, or could help you save up so you have an emergency buffer.
Finally, it doesn’t matter how much money you earn, if you’re not budgeting correctly you’ll always be in debt, in arrears and living paycheck to paycheck. Work out how much money you need to spend and on what and stick to it. Pay your bills and get your groceries before you consider buying extras or groceries. Have a separate bills bank account that you can transfer money into each week and that all of your direct debits come out of. That way, you know you won’t accidentally spend back onto it.