Halfway through the month, most guys tend to be broke by now. No matter how much they earn, it somehow isn’t enough to push them till the end of the month. Money Problems Money Solutions, an online personal finance site have identified a solution to this:
- Increasing your income, or
- Reduce your expenses
Increasing your income
You probably wish you earned a little bit more than you do now, perhaps the extra cash you will make will push you to the end of the month. Considering the fact most employers are reluctant in offer their random pay rise, Money Problems Money Solutions have identified a few was through which you can increase your income:
- Work more overtime
- Get a second job
- Start a home-based business
- Try to find a better paying job
While increasing your income could help you earn enough to last you through the month, it comes with one common risk, falling victim to lifestyle inflation. Simply put, lifestyle inflation indicates the rise in your lifestyle expenses.
This is one of the most common traps many people fall into once they get a new job or a pay rise. Their lifestyle inflates and they begin using the money as though they needed it. Like lifehacker.com puts it, after a few paychecks, what initially felt like a healthy boost and windfall suddenly is just another part of the budget, spent on some new services or habits.
In the long run, increasing your income isn’t always the solution to your money problems, as the saying goes, “More money, more trouble.”
Reduce your expenses
While this is the surest way of balancing your budget, it is the hardest to implement. It basically entails sacrificing some of your expenses to make ends meet. As hard as it may be, it is a necessary evil.
Start by looking at every item on your budget that you listed as a monthly expense then identify those you can reduce.
If your house rent accounts to more than 30 percent of your net come you should opt for a cheaper apartment. Identify all of your non-essential expenditures such as cigarettes and alcohol. Cutting down on smoking and drinking may free up a lot of cash each month. Find ways of getting out of debt and reduce the number of times you eat out.
While a pay rise may not be guaranteed, reducing your expenses will definitely help balance your budget. Try it out.