Ever feel like managing your money is like fetching water into a basket? You’re not alone. We all have been there. However, there are strategies you can adopt to manage the situation. This isn’t about getting rich quick or cutting out on what makes you happy. No, it’s about making that paycheck work for you, no matter its size. We will look into budgeting, but in a way that feels more relaxing. We will also look at other ways to help you manage your money no matter how little you earn.

You should understand your financial position

First things first, let’s talk about tracking your income and expenses. This is not just about knowing how much you make; it’s also about understanding where every dollar is going. And yes, every dollar. That everyday morning coffee or the occasional online shopping spree? They all add up eventually.

Now, onto budgeting. If the word ‘budget’ makes you yawn, hold on a second. A budget isn’t a financial straitjacket. Instead, think of it as the freedom to decide what’s important and what’s not. It’s about making choices that align with your goals. You can’t spend like your neighbor, you don’t know how much he earns and how much debt he’s carrying around. You should have your own goals and stick to them. Your goal could be to save for emergencies, to go for a trip, or simply to live a debt-free lifestyle.

So, let’s take that first step together. Pull out your bank statements, get a notepad, or open up a budgeting app. Let’s look at how you can budget.

How to Budget

Step one: lay out all your expenses and income. You’ve got your fixed expenses like rent, then there are the variable expenses like eating out, entertainment, and those online purchases.

This is the point where you ensure your expenses don’t exceed your income. Sounds simple, but it’s where the whole essence of budgeting lies. If you discover that you have been spending more than you earn then you need to make some adjustments according to what you earn.

Maybe you could get an extra job, but for now, you need to practice management. Would you rather deny yourself of some things than go around with high credit card debts? The situation would get a lot worse when you earn low and are still indebted. Although, you can fix overwhelming debt issues by speaking with one of our debt experts at EmpireOne Credit. But if you don’t want to keep having recurring debt issues, budgeting must become your best pal.

You should reduce your expenses

Ever check your bank statement and wonder where all those small purchases came from? It’s like they multiply when you’re not looking! Here’s a free tip: track your spending for a month. You’ll be amazed at what you find. 

Now, let’s talk about the big stuff – housing, groceries, utilities. You are probably spending close to half of your income on this. But even at that, there are ways to trim down. For example, consider a roommate if your living situation allows. That means you will slash your rent by half. You can also plan your meals to cut down on always dining out.

As for the utilities, you need to become a power-saving person. Unplug gadgets, switch to energy-efficient bulbs, and maybe even challenge yourself to shorter showers. These options will go a long way.

Cutting your expenses isn’t about living a life of deprivation. It’s just you trying to take charge of your life and situation. Even wealthy people also budget, so it’s not about earning low or high. Budgeting should be everyone’s survival skill.

You can increase your income

Sometimes, trimming expenses can feel like you’re squeezing a lemon that’s already been juiced. When you’ve tightened the belt as much as you can, it’s time to look at the other side of things, which is increasing your income.

Now, you might be thinking, “Easier said than done, right?” But hear this. There are more opportunities out there than you might realise, and they don’t all involve working round-the-clock. There are simple part-time and remote jobs, as long as this side hustle doesn’t affect your main hustle.

The beauty of a side hustle is that it can be as flexible as you need it to be, it should fit around your main job or other commitments.

But what if you could invest in career advancement? Investing time in learning new skills or enhancing existing ones can open up doors you didn’t even know existed. And thanks to the internet, courses and resources are abundant, many of which are free or low-cost.

Debt Management

First off, let’s differentiate between the good and bad debt. Things like a mortgage or student loans are good debt because they are like your investment. But high-interest credit card debt is a bad debt. You need to ensure you’re in charge, so the debt doesn’t get out of hand.

And if you’re in deep, there’s no shame in seeking help. Debt counselling is available at EmpireOne Credit. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!