Being frugal is never easy, but surprisingly, it can be hardest when people are experiencing the greatest amount of financial stress. Spending money and acquiring new things can be just as comforting as overindulging on sugar-laden and calorie-dense foods, especially once anxiety rears its head. In order to pull yourself up by the proverbial bootstraps, however, you’ll have to learn how to cut your expenses, save more, earn more and appreciate what you already have. Following are a few tips to help you bring your cash flow issues under control.
- Stay Positive But Be Practical
Maintaining a positive mindset is critical when hard times hit. After all, you won’t be in the best state for solving money problems if you constantly feel like a deer caught in headlights. However, you also have to be practical. Recognizing that your spending or your cash flow issues are spiraling out of control will motivate you to take necessary action. Be mindful of the fact that most money problems don’t correct themselves. Unless you design and implement a strategic and aggressive plan for fixing your circumstances, your debt will likely continue to build.
- Pay Cash For Everything
Cash flow issues lead many people to revamp their credit management plans. If you have a credit card that’s meant for emergencies only, make sure that you stay true to original intentions for using this card. Although these funds are all too accessible when you need them, buying with credit will only compound and extend your hardship. If you don’t have cash on hand for a purchase, try looking for ways to get the money you need, even if this means selling something that you currently own but don’t really require. It makes no sense to rack up credit card debt and all the associated interest when you have valuable and rarely used items simply sitting in your home.
- Shop With Economy In Mind
Cheapest isn’t always best. Being too stringent with your pocketbook could wind up costing you in the end. Good economy is attained by investing in products that are durable, long-lasting and capable of serving their purpose. Spend sufficient money to get what you need, but avoid overspending on essentials for the sake of name brands or added, unnecessary features. For instance, you may find that for your needs and your level of usage, a $30 cellphone can be just as efficient as one that costs several hundred dollars.
- Record And Track All Of Your Spending
If you don’t have a budget, build one. You also need to start recording and tracking all of your expenses, including the small and seemingly insignificant ones. Parting with a few dollars each morning for a specialty coffee can really add up. Identifying and changing habits that account for nominal amounts of waste can result in big savings over time.
- Start Building New Revenue Streams
When you have more going out than you have coming in, spending less is only one part of the solution. You also have to figure out how to make more money. More consumers are starting online or home-based businesses, selling things they don’t need, renting out rooms and taking on part-time jobs. The hard reality is that the average cost of living is increasing and this means that you’ll invariably need more money to stay afloat. Working more hours may mean sacrificing more time with your family and forgoing some of the recreational activities that you enjoy. If this is a prospect you don’t relish, consider priming yourself for promotion by designing and implementing a strategic, professional development plan for advanced, industry-specific skills.
- Protect Your Assets With Diligent Maintenance And Smart Improvements
One of the biggest mistakes that people make when their bills start to mount is overlooking the need to maintain their assets. This is especially true for homeowners who may start putting things like plumbing inspections and minor roof repairs off in order to free up extra cash. The assets that you currently have can play a major role in helping you regain your financial footing. Thus, make every effort to take care of these things and to improve upon them when you’re able. Even small projects like tile cleaning and kitchen cabinet refacing can preserve and build the overall value of your home investment. Building sweat equity now will have definite payoffs in the future, especially if selling your home turns out to be a part of your financial rehabilitation plan. You should also note that staying on top of home maintenance and repairs can be infinitely cheaper than correcting latent property damages.
- Start A Gratitude List
One of the best ways to keep emotion-driven spending in check is to be mindful and appreciative of all that you currently have. Declining financial stability can make people start seeing the proverbial cup as half-empty, rather than half-full. This in turn creates the need to purchase and consume more things in order to attain a false sense of contentment. Write a list of the things that you’re currently grateful for, despite any hardships you’re presently facing. These can include the ability to walk, the personal freedoms you enjoy, the roof over your head, support from your loved ones and a steady and stable job. Maintaining a mindset of gratitude will allow you to fully appreciate all that you presently own, rather than building more debt to acquire things that aren’t guaranteed to have any positive impact on your capabilities or overall life quality.
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