Have your money matters gone off the rails?
There are a variety of methods to get those wheels turning in the right direction again. Let’s stop the engine and take a look at how you got to this stage.
There are two sides to the track: what goes in and what goes out.
Your financial situation is the same as driving a car with a full tank of gas. Your income, that is, the salary/salary you receive, is like filling the tank. Your expense is the kilometers you travel, that takes money out of you. Do you keep your tank full? Or do you leave the tank empty and do not reach your destination?
Entry
If you are in a situation where you do not have enough money in the bank account. Is there an opportunity to increase the money coming in, for example;
o Work an extra hour each day – that could be 7 hours a week, almost an extra day
o Find a skill you have to provide an additional service
o Volunteer for opportunities that may not pay today, but can increase your skills for a better position in the future
o Look carefully at all your “treasures” if you still need them or you could sell some of them to fill the “tank” in the short term
Keeping the tank full gets you where you want to be
Bills
Expenses are all those things that we have to pay for. Some are more important than others. Let’s break them down into “essentials” and “nice to haves.” Look at what you spend in the following areas. How far can you travel before your next payday?
Essentials… Weekly expenses… Changes I can make
Rent, mortgage or cost of housing
Basic food for daily life – groceries
Transportation – Fuel/Bus/
Electricity / Gas
Water
Telephone – landline/cell
Insurance – home/life/public/medical
loans
Credit card payments
Family obligations: childcare, etc.
Retirement/Savings Program
(a) Essential Sub Total $
(b) Record take-home payment $
Remove (a) from (b) This is (c) “Nice to have” – lifestyle options $
How is your bank account?
If (a) is greater than (b) it is like driving your car too much.
Your bank account is not big enough for what you need to pay.
If (b) is greater than (a) well done, you have planned the essentials on this trip.
You have money for extra “nice-to-have” goodies: lifestyle choices.
You can only spend what is in (c) to cover what you think you really want: eating out, coffee/latte, clothes, movies, hobbies, subscriptions, vacations, etc.
I can hear you saying that you are different and this would not work for you! Set a goal for how you would like to live in 5 years. Carry a photo in your wallet of your future dream or goal. When you open your wallet to spend, you will see this image. It will remind you every day that you are stealing from yourself and that you deserve better than that for your life.
Living within your means will get your finances back on track
