Feeling like you’re working to pay the bills sucks. You put in long hours at a job you barely like, simply to hand it all over to bill collectors and living costs. Though you’re fortunate to have what you do, sometimes you wish you had just a little bit more. A bit of extra money in your pocket allows you to spend money on things you want like clothes, shoes, jewelry, home decor, and vacations. Yet, it seems for every penny you make, there’s another expense to cover.
Lots of people feel and live this life daily. The cost of living is certainly high, and raises are far and few in between, but with a bit of smart financial planning, it is possible to have more. Below, are a few suggestions on how to get more money for things you want.
Get Real About Your Finances
Most people who live paycheck to paycheck have no idea what their financial status really is. They live beyond their means and struggle to repay the debts. So, the first step to having more money is getting real about your finances. Gather all your bills, bank statements, and debts. Calculate your total monthly expenses, overall debt, and your monthly bills. Compare this balance to your income.
Cut Unnecessary Expenses
Chances are you’ve seen a significant difference in your income and your expenses. In order to accumulate more money, you need to get your expenses below your income. This starts by cutting unnecessary expenses. Based on all your bills and monthly expenses, what are some things you can get rid of or reduce? Things like eating out, shopping, and personal pleasures can be put on hold or reduced. You can also opt to do things like cut your cable, downgrade your mobile phone plan, and conserve energy and water to cut down on utility costs.
Pay Off Debts
Another way to reduce your out of pocket expenses is to pay off your debts. Place all your debts in order from smallest to largest. Start with the smallest debt and pay on it each month. Work your way up to the larger bills. You can also contact creditors to find out if there are payment arrangements or settlement amounts that can be offered to get your account resolved. If they are willing to remove late fees and collection charges and offer to settle for a lump sum, you can apply for quick installment loans online and use that money to pay off the old debt. This gets it resolved on your credit report faster, and gives you small, monthly payments to repay the loan.
Bring Home the Bacon
The last step to having more money for the things you want is to bring home the bacon. Everyone should have a secondary source of income, as job security isn’t guaranteed in any industry. Starting a side hustle that generates decent cash adds to your pot each month. You can use this extra money, at first, to pay off those debts faster. Then when you’re debt free, you can use the extra cash to buy things you want.
It really is possible to pay for things you want. All you have to do is get wise about your money. Start by taking a real look at your finances. Then, find ways to reduce spending. Lastly, dig yourself out of debt by paying smaller debts first and working out payment arrangements. From there, it’s simply a matter of earning more money and enjoying the fruits of your labor.