Have you ever felt like you’re struggling to make ends meet? Like every time money comes in, it goes right back out? Do you also feel like you are constantly in a state where you feel broke? If you think this way, believe me, you’re not alone; most Millennials live paycheck to paycheck these days, but it’s time to change that situation.
We’ll show you how to develop the best habits to change your status.
Why you need to change your situation is very important, and you should remind yourself of these reasons every time you want to give up and it will motivate you to get back on track.
Living paycheck to paycheck is very stressful; you will feel like you are just working to cover your basic expenses without having the opportunity to enjoy anything.
You can’t travel, you can’t save, you can’t even go out more than twice a month… You are working to pay bills. This can result in bad financial habits, spending too much on unimportant things, or living beyond your means.
I have good news for you: whatever the reason for your current situation, you can change it. It takes a lot of willpower, but it’s not impossible. Take a deep breath; this process will take time and effort.
Steps to improve your finances if you are tired of being broke.
Let’s get one thing straight: The tips below will only work if you apply them consistently. You will start to see results over time, so don’t expect anything immediately.
1. Keep control
To be able to change your situation, you should be in control. It doesn’t matter how you got into this. Whether you spend too much or have debt, you should know what power you have. By stopping this constant overflow of bad energy, you will already feel better. You shouldn’t let money rule how you live your life.
2. Your mindset
Have you ever heard of the term positive thinking? I know you’re broke, and things aren’t looking rosy, but it’s too easy to think negatively when you’re broke. It would help if you challenged your mindset and start thinking positively.
Are you wondering how changing your mindset will help you be less broke? When you change your perspective, your behaviour changes too, and as a result, you’ll make better decisions regarding your spending habits.
Developing a positive mindset won’t happen overnight, but you will learn to change it over time. You can do this by writing your positive thoughts on a piece of paper each day and reading it throughout the day.
3. Create a budget
Now that you’ve figured out your finances, it’s time to get to work. If you don’t have a budget, you will fail. I’d like to speak bluntly; a budget is essential, if not vital, in times of need.
Create a budget by listing your income and your significant expenses, such as rent. Then, on the side, make a list of last month’s expenses and see how much you spent on useless items.
There are many budgeting methods you can use, such as the envelope or the 50/30/20 budgeting method. If one doesn’t suit you, there are many other methods out there for you to try and one will ultimately stick. Don’t limit yourself and find a method you are comfortable with.
If you want to read more about how to get out of the ‘broke’ situation you are in right now, look out for part two of this series. Till then, remember that being broke is also a state of mind in which you will have to pull yourself out. Let us know in the comments if you are motivated to get out of this state…