The global outbreak of Covid-19 has led to people across the world facing pay cuts and losing their jobs. Whether you’re a college student struggling to make ends meet or someone looking for ways to make your paycheque last, we’ve got your back. We’re sharing some useful tips for improving your current financial situation. Take a look.
1. Create a Budget
If you don’t already have a budget, it’s high time to create one. Make a list of all the essentials that you need to spend every month. But just making a budget is not enough. You have to consistently and strictly follow it.
2. Track Your Expenses
Are you unsure where your money goes? Start tracking your expenses, note down every single thing you spend on. Download an expense tracking app to analyse your everyday spending. Cleo is a budgeting app that will roast you for frivolous expenses! This will help you understand if you’re a rational spender.
3. Postpone Major Purchases
Whether you were planning to buy a new car or an expensive household appliance, it’s best to postpone such major purchases for now. Only commit to such expenses once your financial standing improves.
4. Take Out a Small Loan
If it is becoming increasingly difficult to stretch your paycheque till the end of the month, give yourself a break by taking out a small loan. Online payday loans are easily accessible, and you can get the funds transferred to your account in a day. Make sure you utilise this loan for essential expenses.
5. Avoid Inessential Expenses
It’s possible that there are several inessential things in your everyday life. Do you really need a new pair of shoes? Is the expensive brand of coffee necessary? Take a good look at your current expenses and eliminate everything that’s inessential. Remember, this is only a temporary compromise. When you’re back on your feet, you can go back to your usual lifestyle.
6. Shop Secondhand
From clothes to furniture to electronics, start shopping second hand. You can easily get your hands on gently used items at heavily discounted prices.
7. Take Up Extra Shifts
There is only so much you can do when it comes to reducing your expenses. Another way to increase your disposable income is taking up extra shifts at work. You can also consider getting a second job.
8. Find a Side Hustle
Are you excellent at crafts? Do you love walking dogs? Monetise your skillset to start a side hustle and make some extra cash.
9. Sell Clutter
Take a look around your house and gather all the things that you don’t need or use anymore. Collect clothes, furniture, books, home decor and so on and sell them for cash.
10. Ask Family & Friends for Help
If you’re in a rough financial position, there is no harm in asking your friends and family for help. Even if they can’t lend you money, they can look after your kids or pets while you take up extra shifts at work. Don’t feel ashamed to share your monetary struggles.
11. Cook at Home
Do you often eat out or order food? This seemingly simple habit is consuming a lot of your monthly income. You can cook at home at a fraction of that cost and save money. Explore Youtube for healthy and nutritious budget recipes.
12. Cancel Memberships & Subscriptions
For the time being, cancel gym memberships and multiple streaming subscriptions. You can work out at home and find other free ways to entertain yourself.
The Bottom Line
Going through a cash crunch may feel like a never-ending cycle, but taking charge of your situation and making immediate changes will set you on the path of a comfortable financial position.