In this global economic hardship era, it’s not so surprising to easily fall into the trap of overspending resulting in need for financial support from every angle. This brings in the craving for quick solutions available. Most at times not taking into consideration the actual reality of our financial status and state. Considering a life beyond our means sets in breeding the arousal of going in for financial support outside the box or beyond our current financial status. The probability of debts setting in becomes very high here. After which stress, confusion, pressures and possibly depression mount up leading to numerous uncertainties in financial state in the near future. Nevertheless, we will be taking a look at how to deploy practical strategies in achieving a stable financial status by making sure we stay within our financial boundaries. Whereby attaining a life full of joy and sound mind.
1. Make a Budget
The major aim here is living below one’s earnings/means. Anyone who is able to come to this state or maintain it is free from unnecessary debts. And the first tip on the list is making a budget. We learnt in our basic pre-school level what a budget is all about. It is not something new to me and I know the same goes for most of us. In this part of the world, even the Government presents its budget before the whole nation through the media, in parliament. This is done in a particular time frame. So, we can see how important this basic practice is yet neglected by lots of us. I can relate sometimes. We have an excuse that the economy is stable. There is frequent price change not only in goods but even in basic services we receive each and every day. This excuse should even be a bigger reason for the making of the budget, that way, we can plan ahead. We can easily factor in the inflation rates and other economic potentials that may lead to an increase in a commodity or service. That way we make room for extra spending due to inflation and certain fiscal policies. By doing so, expenses can be tracked and funds allocated wisely. Knowing where cash should go and not too.
2. Save before spending
That is why budgeting is very important. We are able to first create room for savings and investment. We have total control over the cashflow. So as soon as we receive salary or earnings, we can allocate some percentage for it before we even think of spending. This fund could be accessed in times of emergency that is if emergency funds are not able to meet the necessary demand. This should also tell us that it is very good to have separate emergency funds aside from savings and investment. This can easily be achieved through savings automation; funds are transferred straight to savings even before the remaining reaches the spender.
3. Increase income
There are lots of ways when it comes to this part of practicality of living below one’s earnings in this twenty first century age. There are lots of off side hustle that pays. From online to offline. Running personal business or assisting someone. With online trust me there are tons of them. Youtuber, Crypto trading, forex, social media influencers, ai advertisements which has to do with the creation of short videos, blogging, online tuitions, etcetera etcetera. The list goes on and on; you name them. By doing so there is an extra cash flowing in to take care of extra arising expenses. This may automatically reduce the pressure on the initial earnings. In a way spending more but living below or within standard.
4. Cutting unnecessary expenses
Luxury living may come later but for now we live within the simplest standard as much as possible. Certain subscriptions and unnecessary outings to fancy places must be cut off. This will help retain cash which could be rechanneled to savings and investments. Finding simplicity in every aspect of life and embracing minimalism rather than a buoyant lifestyle. Making it a point to appreciate nature when bored could take your mind off various expensive outings that could drain our hard-earned money.
5. Prioritize loan repayment
Make sure to get out of debt as soon as possible if you have already found yourself in there. Being in debt comes with lots of pressures and distress, especially the ones that are overdue. Debtors even add penalties to it. Repaying more for what you did not make use of. This is sometimes heartbreaking yet not anyone’s fault. Payment made then another taken, then payment made and it keeps increasing with time. Forcing an individual to enter in the rate race. That is another topic on its own but I know most people do know what that is.
Don’t get me wrong, we are not to deprive ourselves of good life and well living all in the name of financial freedom. Just that certain mistake and habits leads us into conditions that make it very difficult to live within a stable state. Which we just have to correct. Living within one's means should not be very difficult if not peer pressure and the luxury of this life. Talking from my point of view and a bit of knowledge acquisition from diverse sources. I agree to disagree and welcome your thoughts and contributions as well as question. Please do your own research(DYOR) AS WELL.
Thanks for passing by my blog and see you in my next publications.