No one likes to be broke. Unfortunately, many people live paycheck to paycheck. It’s an uncomfortable lifestyle that can leave you feeling uneasy. The good news is you can do something about it. Whether you create a budget or shop with intent and purpose, you can stop being broke. Let’s take a closer look.
Create a Budget
For two months, take the time to write down every bit of money you spend. You want to track your expenses so that you know exactly where your money goes each month. Once you see what you’re spending money on, you can create a budget.
Be realistic. There are some things you can cut and some things you can’t. For example, trying to feed a family of four on $100 a month isn’t realistic. However, cutting back to eating out once a week is.
Cut Unnecessary Expenses
Another benefit of tracking your expenses is you can determine where you’re spending money that doesn’t make sense. For example, you may be paying for a service that you hardly use. Or, there may also be ways to do the same things for less. For example, you might decide to switch to Straight Talk to save money on your cell service.
Shop with Intent and Purpose
How often do you buy things just because you like them? Your home may even be filled with purchases you regret making. When you go shopping, shop with intent and purpose. Think of the things you need before you go shopping, make a list, and stick with those items.
Avoid window shopping or browsing sections you don’t need anything from. Before you buy something, determine how you’re going to use it. If you don’t have a purpose in mind, you don’t need it.
Pay Ahead on Bills
Whenever you have extra money, pay ahead on your bills. You can actually save money by paying some bills a year at a time. Some companies will give you two months free for paying in advance. This also gives you more money during the month. Put that money away so that you can continue to pay bills a year at a time.
Stop Using Credit
Last, but not least, stop charging to your credit card. Carrying debt makes it impossible to get ahead. If you find that you depend on your credit cards to pay some of your bills, you need to cut expenses, move to a place with a smaller payment, etc. You should not have to rely on credit cards to meet your monthly obligations.
If you want to stop being broke, you need to be financially responsible. It may be hard at first, but you’ll soon adopt good habits that will allow you to get ahead and have money in the bank.