Have you ever felt stuck in a cycle of spending more money than you would in? Have you not been able to consistently save due to tight cash flow? Do you always tell yourself “broken and tired”?
you are not alone. 70% of millennials live their paychecks to pay, bringing home only enough money to cover their costs. That being said, you can change your situation. But you need to plan, make better habits and be consistent!
Why are you broken and tired of it?
Pay on salary can be stressful and can make you feel like you’re working just to pay your bills. You may not be able to save as much as you wish, or you may have the ability to enjoy your money without worrying. Continuous anxiety about whether you can afford or not is tired and weighs you mentally and emotionally.
Where you are now may even be the result of something beyond your control… Life happens. However, it could also be from bad financial habits or past decisions.
The good news is that your current financial situation is not set to stone. If you want to break down and improve your finances, you can put your time and effort into doing so. This is how you can get started!
If you’re tired of being broken, 7 steps to improve your finances
These seven steps to improving your finances work best when done intentionally and consistently. Don’t stop prematurely as time goes by and as the results begin to see! Using that momentum as a motivation, we will continue to continue and continue to make progress.
Eventually, you’ll say, “I’m tired of breaking and running out of money,” then go “I have all the money I need!”
1. Manage your finances
The first step to changing your finances for the better is to realize you are in control. No matter how you get caught up in this situation, taking the reins and realizing that you are holding power leads to positive change. You may have felt or believed that money was controlling you, but that’s not the case.
You control how much money you spend and how much money you make. You can also learn things you may not understand about your personal funding and take action to improve.
2. I will adjust your way of thinking
You’ve probably heard many people say that in order to make and maintain positive change, you need to think positively. It’s really easy to see negatives when it breaks. Shifting your way of thinking from negative to positive will motivate and encourage you when and/or when things get difficult.
It’s not always easy, but a positive money mindset can go a long way. Furthermore, being proactive in adjusting your mindset can help you change your behavior and make better decisions. If you look at positive outcomes, you behave differently.
If it’s difficult to cultivate positive thinking, try writing down all your negative or limited thoughts and beliefs. Think about how these thoughts have shaped your financial habits. After completing the list of negative thoughts you have about money, see if you can counter each with positive thoughts.
The easiest way to do this is to involve a positive affirmation. For example, instead of thinking “I’m tired of being broken,” you can switch to action mode by shifting your mindset, “I have a wealth of money!” It also removes some of your worries about money and serves as a motivation when you start planning and budgeting.
3. Create a budget
Now that you’ve started mastering through and through some of your mental disabilities, it’s time to calculate some numbers and move on to more specific actions.
If you don’t have a budget to reference, just set aside time to create it! This is one of the most beneficial things you can do by planning and digging into ways to get out of it after it breaks.
Start by creating a list of all the money you’ve come in and all your expenses. To assess your current expenses and spending habits, check past bank and credit card statements to see where your money is heading. This helps you see areas where you can reduce.
Choose the right budgeting method
Once you know your current location and spending habits, make a physical or digital copy of your budget for your next salary.
This can be made simple. For example, some people think that budgeting methods on 50/30/20 will help you save more money.
This method allows you to allocate income to expenses, money expenses, and percentage of your overall savings. Therefore, 50% is devoted to housing, food, etc. needs, 30% is your desire, and 20% is your savings!
You can further simplify this method using the 80/20 rule. This rule is easy to follow as it uses 80% for your needs and requests and saves the other 20%. Other budgeting methods include the 70-20-10 rule, 60-30-10 rule, and 30-30-30-10 rule.
There are a variety of budgeting methods and tools to choose from. So, if things don’t work, don’t get stuck. You can try different methods and see what will help you save more money.
4. Do something more modest so that it doesn’t break
Now that you have identified categories that you can reduce, you can reduce the allocation of those spaces. Reducing the biggest costs (home and transportation) instead of nickel and darkening small things will have the biggest impact when trying to make your expenses lower than your income.
If you can, consider reducing your home costs by miniaturizing it or moving it to a cheaper home or apartment.
You can think of reducing transportation costs by getting a cheaper car, or if you have a car that requires a lot of repairs and maintenance, you can think of getting a car that can hold less money.
Also, you will be more frugal in other regions where you spend most. Here’s a great list of things to do when you break!
Use coupons and cashback app
Use coupons to store groceries and other household essentials. Apps like Ibotta and Fetch Rewards offer rewards or cashback to purchase specific items and scan receipts. If you’re tired of being broken, start coupons to save money!
Prepare meals and cook more frequently at home
The convenience of takeout eats up much of your budget (no pun intended). To be more modest and not over budget, prepare more meals at home. You can also save money by planning meals around weekly ads at grocery stores.
Try out the unsupported challenge
Take a break from shopping with items you don’t need. Unresponsive challenges are fun ways to test your discipline and better recognize your spending habits.
It also helps you become more intentional about your spending and helps you decide how to make the most of your spending.
Overall, plan your money. Take control and tell your money where you want to go.
5. Except for emergency situations
If you’re tired of breaking, having emergency funds is essential. Once you set a budget and cut your costs, you can start saving and pay for saving. Unexpected events can be seen and emergency savings can help deepen your debt.
Being proactive and saving money “just as a precaution” will reduce some of the stress when these situations arise. Start your emergency funds using the money you’re saving from reducing your expenses and saving your expenses.
6. Increase your income
Reducing costs is an easy way to see progress, but realistically, it can only significantly reduce costs.
Ultimately, you will reach a point where you cannot continue reducing. It takes time and effort, but at some point you need to increase your income.
If you can increase your income while simultaneously reducing costs, you will work on ways to get out of breaking even faster! To increase your income and bring more money into the home, you:
Negotiate a salary increase at your current job
Research your pay data and see how pay for similar positions in your area is compared to other salaries. Sites like Salary.com and GlassDoor.com allow you to compare salaries based on skills and title. Create a list of your achievements and be prepared to have a negotiation conversation when the time is right.
Find a new job that pays more than your current job
If you can’t negotiate a salary increase, find a job that pays more than you currently have. In many cases, moving on to a new job is the best way to significantly increase wages. Plus, it’s a victory because you can find the job you love while you’re in it!
Money your hobby
Do you have any hobbies you enjoy working on when you have downtime? Understand how you can sell what you create and make extra money in your free time. Check out these 40 top moneyking hobbies for ideas!
Become a freelancer or start a business
Start a service-based business or become a freelancer using skills you already have. You may already have skills in demand, and you can start freelance side hustles or build your own business by leveraging your skills and knowledge.
7. Create a debt repayment plan
They created budgets, launched emergency funds, and increased their income. There is a bit of room for cash flow, so paying off your debts will help you become more proactive. Getting out of debt is the best way to change your financial situation if you’re broken and tired!
So start by writing down all your debts and each payment. From there, you can decide which method of repayment is best for you. Two of the most common methods are:
Snowball method
The snowman method is a great way to tackle debt. You start by paying off your debts, starting with the lowest balance. You simply make extra payments for your smallest debt and pay the minimum payments for your other debts.
Once you pay off that balance, you will be transferred to the debt with the next lower balance. Using the debt snowman method, watching your little debt disappear will create momentum and stay motivated.
Avalanche Method
The avalanche law helps you save more money as you pay off your debts starting at the highest interest rate. You will make extra payments for your debts at the highest interest rate and pay the lowest for others.
Of course, this can take some time to repay your initial debt. This is because the highest interest rate obligations are not necessarily the lowest balance obligations. But it can save you some money with interest in the long term.
Whichever method you choose, it’s up to you and what you value more! The snowman method is suitable if you need to be satisfied quickly with a small victory.
The avalanche method allows you to stay focused despite the fact that it seems like it takes time to pay off your debt if you want to save more money.
If you’re tired of being broken, you can change your life!
Being broken can be mentally and emotionally exhausting. Breaking the pay-to-pay cycle and reaching where you live within your means will bring about sacrifices and some collisions on the road.
However, saving money and having fun is definitely worth the job. For a while, breaking down becomes a thing of the past due to effort, changing ways of thinking, and better practices.
Are you ready to change your way of thinking about money and control your finances? Sign up for our completely free “Solid Basics” bundle! Stay motivated to change your finances by tuning into smart girls who know podcasts and YouTube channels!