Earn more, spend less

A situation that everyone faces at one point or another, but a dangerous situation to say the least, having your expenses out way your income is a slippery slope towards over-indebtedness. Barely getting by financially, paying off minimum credit card amounts just to keep interest at bay, this is a time to clamp down on your spending and looking towards an increased income.

Let’s talk solutions

There are many ways to reduce your spending on a day to day basis as well as increase your monthly income. Although sometimes small savings or short term gains, bit by bit it can add up- no amount is not worth saving. Often we over look small amounts, but after a time a small saving can add up to a large gain for you and your finances.

What do you need?

A simple step that can also yield great results over time is to separate essentials from perceived essentials. Often we get used to certain luxuries or brands and assume we must have them to live life to the fullest. Separating what is essential from what is only perceived to be so allows us to reduce our monthly spend dramatically. Cut down your brand of coffee, switch to a store brand soap and find alternatives that fulfil the same needs without costing you a fortune over the long term.

Budget, budget, budget

Although it is best to look for sales and discounts, don’t fall into the trap of buying something just because it is on sale. Before you buy anything you should ask yourself:

• Do I need this?
• Will I use this?
• When will I use this?

If you need something, buy it, but if you think you may need it at some point…put it down and walk away. While emotional spending can play a huge role in this, it is best to stick to necessities until you have money to play with.

If you can couple a good budget with an increased income, whether it be side jobs or home based projects, you will be on your way to financial security in now time. Taking in more, and paying out less, this is a slow and steady climb back to financial freedom.