Sally runs her own web store selling aromatic candles online. She finds her income fluctuates from month to month. It is especially high prior to the festive months such as Christmas or Valentine Day’s where people purchase more to give away as gifts. Thus she finds that she has excess of cash on certain months and very little coming in on the next few months.
https://www.youtube.com/embed/NHVMwtedowMThe first tip to consider is to simply spend less. Try not to spend so much money. Yes, this seems rudimentary, and too easy to accomplish, but it’s vastly important to understand that the crux of all Budgeting Tips relies heavily on the idea that you’re looking to not spend so much money. If this is not true, then whatever plan you choose to follow will not only fail, it will fail miserably. So before you invest any money into any program make sure that your #1 goal is in fact to give away less money in your future.
What I am describing can be a very large burden on young families. This was a very difficult time for my wife and me, but with almost twenty years of experience under our belts, I now feel equipped to offer you some advice.
You should always have a safe option and a back to rely on in case of any emergency or a job loss. You should always have recovery plans in mind and then spend accordingly. You should only get a loan if you have permanent good paying job, so that you can easily manage it; otherwise, it will go beyond your imagination.
I remember when the debit card was first introduced in the banking world. They wanted us to make sure every customer had a debit card. I think the banks had done their research, using credit cards as a model, and noticed that people spend more when it is not cash being exchanged but plastic. Well swiper no swiping, I went back to what worked. I can remember older customers coming in with their envelopes, one was usually marked spending money and the other bills, or something along those lines. But the concept here, is that they knew how and where their money was being spent and made a point to stay within in budget.
It could get worse. What if, during month 16 of your repayment plan, your car breaks down and you are facing some major repairs. Since you don’t have money in the bank, you need to pay the $2,500 bill with your credit card! Now, you are in roughly the same position you were when you started paying off the TV and vacation 16 months ago!
Almost everyone exceeds his monthly limit and does not care to know the reason. This leads to a very bad situation. Indeed, the internet is full of many frugal living tips. They are of a high value for you in case you find yourself frequently overspending your limit.
Second: Choose practical. For every product available in the market, you always have a choice whether to go with the most expensive brand or the most affordable. A lot of people believe that they can go read more for the most expensive purchases just as long as they still stick with their budget plan. On one hand, it is not completely a bad thing because the most important matter is to abide by the budget. On the other hand, if you can choose a cheaper purchase without compromising the quality of what you wish to avail, then that would be friendlier for your finances.
