How to Stop Living Beyond Your Means in 7 Simple Steps
If the thought of checking your bank balance fills you with dread every time that is a sure sign that your finances are out of control and you are probably living beyond your means.
Everyone has bills to pay each month but if you can get smarter with your cash and keep within the financial constraints you are working under it could make a huge difference to your whole outlook.
If you want to fix the problem and find some inspiration for ways to potentially grow your income you might want to see what sites like journeytobillions have to offer. Meanwhile, here are some useful tips to help you get your finances in better shape and keep your income ahead of your outgoings.
Create a budget
This is the most important tip of all. You need to write down a list of everything you spend each month so that you know exactly where your money is going. That is the only way you can take control of your finances and see ways to cut your spending on things you don’t need or can’t afford.
Have a backup plan
Sudden and unexpected financial emergencies can cause financial havoc and you may find yourself putting a bill on your credit card. This is a sure sign that you need to organize your finances better if you want to stay within your means.
Aim to put a small amount of cash away each month from your paycheck into an instant-access savings account. When you get hit by a bill that you hadn’t planned for you will be able to pay it without resorting to expensive borrowing options.
Know what you owe
When you are in debt you might be reluctant to confront the situation. You have to know exactly what you owe so that you can formulate a strategy to bring your finances under control.
Having a number to work from will make tackling the problem a lot easier.
Resist your impulses
Impulsive purchases can really damage your bank balance. Learn to show some restraint and give yourself a waiting period of at least a couple of weeks to see if you still want the item.
Resisting your impulse to spend without planning will make a huge difference and change your attitude towards money for the better.
Ditch the credit cards
It’s way too easy to spend money on your credit card and run up debts that are beyond your means.
Leave the cards at home when you go shopping or cut them up and see how that transforms your attitude towards what you spend.
Watch your discretionary spending
Eating out or buying a cup of coffee every day can soon eat into your available cash. Work out what you can realistically afford on discretionary purchases and stick to that number.
Cash is king
Although we are all being persuaded to use our cards for convenience it is much easier to have greater control over what you are spending when you are parting with actual cash.
Work out what you can spend on shopping each week, for example, and take that amount of cash with you to the store. It will teach you a level of discipline that will really help you to live within your means.