Ways to stop living from salary to salary
Olugboyinwa Ajomale | 07:54 | 30.10.2017
Living from salary to salary makes it hard to move ahead financially and achieve financial goals.
Having no other source of income automatically means you have to live on a monthly salary.
If you really don’t know how to manage your single income it means you have to keep waiting for the next salary to reflect in your account.
Living from salary to salary makes it hard to move ahead financially and achieve financial goals. The only thing you keep thinking about is how to scale through the month and get your salary.
Here are ways to stop living from salary to salary
1. You must learn how to Budget
With a budget, you can manage your monthly salary well and stop being cash-strapped. Track your expenses and write down a budget.
Having a budget helps to check how much you spend and only helping to spend on important things.
It takes a lot of discipline to follow your budget through.
2. Put money aside every month
Every month you have to make it a necessity to put money aside for emergency situations.
This means you have to create a savings account where you put money to fall back on. It is more like an emergency fund. Make sure you don’t take out of your savings when you are growing your emergency fund.
3. Cut down on your expenses
You should cut down on your expenses. Things you feel you can make do without and you don’t really have to spend money on. With a good working budget, you can achieve this.
It helps to create free money which you can put into your savings and also get out of some kind of debts.
4. Set spending targets
Setting spending targets for yourself. After you to create a budget and have put some part of your income into your emergency savings, you can set a spending target for yourself each month.
It helps to curb your excess spending when you have a limit to your spending.
5. Get out of debt
If you are a chronic debtor and you live only on a single income, you need to find a way of getting out of it. It is a major reason you keep waiting for your next monthly salary.
Debt has a way of eating into your income. A budget will help to know where you can find extra cash to clear your debts.