There’s more to life than money. However, if you’re not making enough cash from your job, you could find that no matter how hard you try to plan your expenses, you’re always falling behind on bills and payments.
It’s frustrating to feel as though you’re stuck in a financial rut. The good news is that there are ways you can begin to turn things around. Applying for a different job or deciding to move to a smaller house could help to reduce your expenses significantly. The first step to success is figuring out whether you actually need to make more cash, or you just need to budget better.
Here are some signs that it’s your earnings. That’s the problem.
- You’re reliant on Credit Cards
One of the biggest red flags that you have a problem with your income, is that you’re constantly using your credit cards to handle your expenses as you get towards the end of the month. Although credit cards and other lending opportunities are useful for certain things, like spreading the costs of big purchases, they’re not there to deal with all of your essential costs.
If your bills for things like your house, your car, and other must-haves are adding up to more than you actually get a month from your job, then you need to think about getting a second source of income or reducing your essential expenses.
- You’re Constantly in Debt
As we mentioned above, debts come in many different shapes and sizes. Some debts are must-haves. For instance, most people will need to take out a loan for some things during their lives. Sometimes it will be money for buying a new car, other times; it will be a mortgage or a student loan. However, there’s a difference between being in good debt that helps you to move forward in your life, and constantly taking out loans just to make ends meet.
Living within your means could mean that you need to take a look at your income and think about the things that you can no longer afford if you’ve seen a reduction in your monthly pay. For instance, just because you want a fancy car and a five-bedroomed house, doesn’t mean you can afford it.
- You’ve Run Out of Money Mid-Way Through the Month
From time to time, we all have bad months. You might end up with a bill on your doormat that you didn’t expect, or a broken down car that forces you to tap into your emergency savings. However, you shouldn’t need to rely on your savings constantly. The budget that you have in place to help guide your spending should show you how much money you can reasonably afford to spend every month.
If you’re running out of cash in the middle of the month, this suggests that your budget isn’t up to scratch, or that you’re not being realistic about what you can afford. Finding a new job could be a good way to increase your income in this case. However, you could also consider other options, like taking on a secondary part-time job, or reducing your expenses by moving to a smaller house.
- You Can’t Find Anywhere to Cut Back
Usually, if you’re having a hard time with your expenses, the first thing you’ll do is look at your budget and find places where you can cut back. Maybe you can reduce your entertainment costs by entertaining yourself at home. Perhaps you can reduce your food bill by switching away from name brands. The problems happen when you turn to your budget to find places to save, and there’s nothing left for you to cut back on.
If you know for a fact that you don’t have any subscriptions to pay for, and you’re getting the lowest price for all your insurance and electricity bills, then you clearly aren’t earning enough money. Check your bare bones budget to find out how much you really need to spend each month and ask yourself if your wages cover it.
Time to Earn More?
Improving your budget and finding extra places where you can save is a great way to give yourself more control over your cash. However, there’s always a chance that you could end up in a position where it’s not your budget, but your income that’s the problem. When that happens, you can either earn more, or change your lifestyle. Either way, it’s time for a big transition.