Living hand to mouth is something many of us do, yet none of us really like to admit it. Living hand to mouth is using your money as it comes in. You always seem to be waiting for that next pay day. You might even regularly find yourself in your overdraft or in debt because of it. Although earning more money can be beneficial, it isn’t always necessary. Here’s some advice that could help you to stop living hand to mouth once and for all:
Understand Your Income And Outgoings
The first step to stop living hand to mouth is to truly understand your incomings and outgoings. If you only pay attention to your income, then it’s no wonder you don’t have any money leftover at the end of the week/month. If you have more going out than you have coming in, you need to do something. Find ways to cut back and economise. Some people have gone as far as downsizing their cars, or even their home. This might sound extreme to you, but just because you could just about afford something doesn’t mean you should.
Act Like You Earn Less Than You Do
A good rule to stop living hand to mouth is to act like you earn less than you do. You don’t necessarily need to scrimp, save and watch every penny, but there are a few simple changes you could make to help you have more money left over. For instance, buying lunch every day can cost a lot of money, so why not buy the supplies to make your own for the week? Treating yourself to a coffee every day or even a couple of times a week all adds up too. If you were to buy 3 starbucks coffees a week, that would come to $6 or more. Over the course of a month, that’s around $24. Over time, this can really add up! Start acting like you earn less than you do when you go out to eat, catch up with friends, or go shopping. Take advantage of deals and don’t buy something if you don’t need it.
Create A Spreadsheet Or Use An App
To help you keep track of your incoming and spending, make a spreadsheet or use an app. There are so many apps out there that can do all of the work for you, and some of them will connect to your bank accounts so you can see what’s going on in real time. By using a spreadsheet, you can really personalize it to you. It’s a very organized way of keeping track of what’s going on, and the more you see yourself save, the more you’ll want to carry on!
Pay Off Your Debts As Fast As You Can
If you’re in debt, as many people who are living hand to mouth are, aim to pay them off as fast as you can. You should do this before you start saving. Having money saved is a must, but doing this before you’ve paid off your debts doesn’t make sense. Your debts will accumulate lots of interest, which means you’re actually losing money while you’re trying to save money. It’s worth knowing payday loan regulations so you know what you’re letting yourself in for. Some people find it useful to pay off their largest debts first so they aren’t accumulating as much interest, but others find it useful to pay off the smaller debts so that they ‘snowball’ and give them more momentum. It’s up to you which way you do it, as long as you get them paid off as soon as you can.
Save Left Over Money
When you’ve paid off your debts and you’re taking the tips in this guide, you should have some left over money each week/month. Don’t spend this money when you don’t need to. Put it in a savings account, so that you begin building wealth. Having a cash cushion behind you will help you to feel more at peace and give you a sense of security. Bear in mind that if you’re putting your money in an account that doesn’t accumulate interest, you’re not really saving. You should put your money in an account that offers interest, so you’re accumulating even more wealth.
These tips should help you to get your finances back on track, and stop living hand to mouth. Living hand to mouth can feel unstable and not very pleasant, so the sooner you stop, the better. It might take time to accumulate wealth and pay off debts, but you can do it with this advice and good focus!