Saving on its own is a pretty difficult task regardless of your financial position. You should now consider it when you’re broke, will saving be an easy task? You know the answer already, saving when you are broke is a hard job but you can still do it. You definitely will never think of saving if you are late on your bills and looking for cash advance loans every other week. That does not mean you should not save; you will be glad you did if you can focus and save during this hard times.
In case you are not aware, saving money during harsh times is a way to get out of the financial sickness you find yourself. Don’t be like 21% of Americans who are without savings, strive to find yourself among the 62% of Americans who have at least $1,000 in their savings account. Yes, you are not overspending or indulging in a frivolous or lavish lifestyle, you are just left with nothing at the end of the month after paying the bills. However, this is not a dead end; there’s still a silver lining in all this. By following this steps, you can budget your way out of being broke.
- Make up Your Mind on Saving
This is a big decision you need to make if you don’t decide on saving you will continually tell yourself that you intend to save while you never get started. Saving to some people is a habit while to some, it is a culture. You need to imbibe the saving culture as part of your lifestyle. You need to start viewing savings as an important part of your finance. Become an economist if you have to and plan out your finances. Make it a habit not, not a luxury.
- Know Where the Cash Is Going
You need to critically analyze your finances if you don’t know where the cash is going, blocking the leakages will be a hard task. This should be the first decision you need to make. Put all your finances on paper and assess the expenses about your income. You cannot start saving just like that without taking this step. Take a real and vivid look at your spending, you can even involve a close friend to help you go over your spending. Do the following;
- Review your bank and credit card statement carefully
- List your weekly spending over at least a four weeks period
- Measure up your utility bills
Don’t leave anything out, tell yourself “every buck counts”. With this done, you are in a perfect position to cut out the unnecessary spending.
- Fit Your Spending Into a Budget
Having determined and ascertaining where your money is going, you will need to create a budget be it weekly, monthly or quarterly. At this junction, you must have seen the bigger picture of your finance and know what can be done away with. In creating your budget, try to be as realistic as possible. Don’t go looking for a budget template to follow, create a budget plan that your life can fit into perfectly without affecting the essential areas of your life. Your budget is a personal thing, more like a to-do list.
Whatever way you develop your budget, however, it must be a realistic one, avoid taking drastic saving steps that might make you eat way less than needed or become a beggar. You don’t have to end up miserable and poor because you want to save. The goal is to save something no matter how little. In essence, your budget must be a sustainable one.
- Eliminate the Extras
Not all bills can be reduced, don’t even think of lowering electricity and water bills. At the initial stage, you will be wondering if there’s anything that can be done away with, look deeper into your finances which you already did in step 2, you must find something that is just extra. Being broke means that some things have to go totally out of your spending. Let’s start with your online cash advance, you need to pay that off. Cable probably costs you $1,000 every year, it’s time to let it go for a while. Telephone bills are also towering; you need to find ways cut them. If you are the type that loves magazines, then this is the time to unsubscribe from paper and make use of online publications.
- You Have to Start Small
Believe it that it is against the order of nature to become big without being small. At the initial stage of making the decision to save, you will be too excited to save that you’ll save as much as you can. However, that is not going to last forever as you will end up on paper. Depositing that large sum you planned into the savings account is a herculean task. Don’t just jump into saving in 4 figures straight away, start small.
- Never Be Late on Bills
Getting behind the bills is a big issue when you’re low on cash. That doesn’t mean you should be late on bills which comes naturally when you are broke. Paying bills late attract extra fees, avoid paying late charges. Your struggle with cash will be worsened if you pay late. Do everything within your power to pay the bills on time. Watch out for the charges on your ATM also, never use the ATM if you will be incurring more by withdrawing.
- Be a Smart Shopper
Mortgages and utility bills are not the only culprits eating out your little income; your shopping pattern is another monster snacking your budget. Learn to make use of coupons in your shopping. You should also compare prices of product and among stores. Most importantly, look out for sales promotions that can get you buy more for less.
In reality, you’ll be able to save with all these tips but for how long? That depends on your discipline as an individual. Look out for means of increasing your income, even if you need to have a second job.