4 Best Ways To Stop Living From Paycheck To Paycheck
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4 Best Ways To Stop Living From Paycheck To Paycheck
The current political situation has resulted to cost of living going up and people have to dig deeper in their pockets. Hand to mouth is not a strange word to most people as it defines the exact lifestyle most people operate under.
However even with the current situation there are several way you can counter the economic hardships and make sure you do not spend a day or two on an empty stomach.
The biggest thing you can do is to learn to budget effectively. Anyone can write down a monthly budget. It takes just a few minutes, and there are several different approaches you can take to come up with your budget.
But writing down a budget and actually budgeting are two totally different things. When you are budgeting effectively you are tracking your spending and stopping when you run out of money.
An effective budget has all of your expenses built into to it. It can also stop you from having periods where you go crazy with spending and end up blowing all of your money for the rest of the month.
1. Cut Back on Your Spending
Once you have established a working budget, you need to begin to cut back on your spending. This will free up money for you to get out of debt and to put into an emergency fund.
Once you pay off your debt, you will have money to spend each month.
The challenge in the beginning is to find ways to save in nearly every category. As you get better at saving, you will be able to find even more ways to save and speed up the process.
You could save by carrying homemade lunch to work or using cheaper means of transport like commuter trains that are available in various estates in Nairobi.
Must Read >>> How Much of Your Salary Should You Save Every Month?
2. Clear off Your Debts
Another way to stop living from a hand to mouth lifestyle is to get out of debt. Your debt is eating up a portion of your salary.
It can hold you back from doing the things you want to the most. You will not get out of debt if you continue to put money on your credit cards.
You need to stop using your credit cards until you are completely out of debt, pay off your mshwari debts and other short term debts that have made you a credit slave.
3. Get a health and retirement plan
This may sound to obvious but get registered to NHIF and NSSF is a very important decision to consider whether you are employed or in business.
Health insurance saves you a lot of money that you could have used on emergenies when getting treatment, on the other hand retirement fund is important since there is life after retirement and you will obviously not be productive as you are in your youth
4. Get a better job
Yes, get a better job, you would be surprised that your current employer is giving you less that you are worth.
Sometimes we get too comfortable at our workplaces and forget that there is a world out there that would offer us better offers and even better job positions compared to what we currently have.
Find Out >>> 4 Secrets On How To Become Wealthy Before 30
There are several sites that advertise jobs on regular basis, try your luck and you never know it could be the start of something new.
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