In theory, your salary should last you the entire month right? Unfortunately, that’s not the case in real life because of unexpected financial emergencies and the expected monthly bills (which still shock you every time).
Many people finish their salaries before the month ends, sometimes even going overboard by spending more money than get and rack up debt in the process.
Is the salary day ‘joy’ often short-lived for you because the money finishes even before hitting your account? You need these tips to help you avoid overspending and stories that touch.
Create Spending Barriers
This is a major step towards stopping some habits or making behavioural changes.
You can start with little changes like not saving your card details on shopping sites, leaving your card at home sometimes while you take the cash you need based on your shopping list.
These simple actions make it harder for you to make expensive money decisions that you don’t even notice in your routines.
Have An Emergency Fund
You must have heard this more times than you can remember, but we’ll say it again! Have an emergency fund where you put money away toward emergencies.
When things don’t go as planned, and life tries to play a fast one on you, your emergency fund gives you a soft landing and keeps you going.
You work so hard for your money and should be spending it on what you want to – not emergencies. Set up an emergency fund NOW!
Learn To Say NO!
The kind of peer pressure that involves you losing something – money, your time, or even more, is a bad kind.
When it gets to the point where you have to go out of your financial comfort zone, try as much as possible to set boundaries and maintain your stand. If that group trip or hangout will take a toll on your finances, find your way out of it ASAP!
Pay Yourself First
Paying yourself first is not about getting that hair bundle you’ve been eyeing or upgrading to the latest iPhone. It is the process of saving for the future you.
Just like other people, you have plans for the future – buy a house, get married, start a business, or study abroad. All of these goals require that you have enough funds. This is why you need to save money from your salary every month.
The Rosabon Earning Plan – REAP is one of the best ways to plan for a rewarding financial future.
Be Self-aware And Honest
If you’re not honest with yourself about what you can or cannot afford, you would set standards that you struggle to live up to.
Salary week would be spent playing catch up with your debt and finances in general. Build a realistic structure for yourself so that your finances can thrive.