Running out of money sucks, to put it bluntly. Many of us have been there, maybe even multiple times. Sometimes it’s unavoidable, but at other times perhaps we just failed to manage our finances well.
Either way, there are some positive steps you can take to avoid running out of money completely and reversing that downward trend. Let’s come up with some ways to turn things around.
You Need To Find the Money Leaks and Plug Them
If you don’t, the financial boat is going to sink into the abyss, taking you along with it. It doesn’t matter whether you’re making a little money or a lot of money, there are always leaks somewhere that can be plugged to prevent yourself from running out of money completely.
The easiest way to determine this and so everything is laid out in black and white is to write down what you spend money on. After a few days or a week of doing so, you’ll soon see what expenditure is necessary and what areas you really need to tighten up on, at least for a while.
It’s a great exercise and a very revealing one.
Find Ways To Reduce Your Current Expenses
This is a little different to the first point in that you’re not looking for the ways you squander money here, but rather are focusing on finding ways to reduce what you pay for things.
A simple example would be rent. If you’re currently paying $400 a week in rent, is it possible for you to move into a cheaper place that might only be $250 or $300 per week?
That’s just one obvious example, and there are likely other areas where you could achieve the same objective at a lower price. Perhaps you could change electricity providers and get a better deal? Or a cheaper package for your mobile phone and the internet? There are always ways to shave off expenses, so you don’t entirely run out of money.
A Small Loan Might Help You Out In the Short Term
Don’t fear this option because you might be worried about credit and getting into debt. The type of loan being suggested here is just a small loan of maybe a maximum of $2000 or so. Many lenders, besides the banks, offer fast cash loans on very decent terms. Sunshine Loans is just one such lender out of quite a few offering these deals.
The idea of small loans like these is to give your cash flow a temporary boost until you can get settled on your feet again. For example, you might be running a small business and need a few thousand dollars to tide you over or get some equipment for the next job. These loans are quite easy to get, and no drama to repay.
Be Socially Boring For a While
Yes, it sounds boring, but it doesn’t have to be permanent. Socialising costs money, and if you do it regularly, it can amount to being quite a lot of money. No one likes to be bored or be boring, but if it stops you from running out of money in the short-term, then it’s something you really should consider doing.
Once your finances are under control, or you’re pulling in more money regularly, then you can return to your usual social life. No sacrifices have to be forever.
Running Out Of Money? Make More Money
Can you ask your boss for a pay rise or promotion? How about considering a career change to something that pays a higher hourly rate? If you’re involved in sales, maybe you could move from an hourly rate to a retainer and commissions? You have the potential to earn more on a commission basis, and it’s very motivating.
Put some thought into how you could make more money from what you’re doing now, or something similar.
Establish Multiple Sources Of Income
MSIs are what they’re called, and it’s the tactic all the wealthy people use. Depending on only one source of income is dangerous. Having 2, 3 or more sources of income gives you both financial security and the ability to build wealth. Search online for ideas on how to create multiple income streams.