Everyone should live an abundant life where they never have to be short of anything, including cash. Unfortunately, so many people are so bad at managing their finances, that they often find themselves without enough money to not only make ends meet but to make life sweet. If you don’t want to be one of them, here are some simple things you can do to ensure that you’re never short of cash:
Monitor Your Micro Expenses
Micro expenses are those little day to day expenditures that we make without even thinking about it; a cup of coffee here, a nice lunch with friends there – it all adds up. Although I’m not for one minute suggesting you should give up these little pleasures, you should at least make an effort to track them, so that if it seems like you’re spending too much on these micro expenses to the detriment of your overall financial situation, you can perhaps cut down a little.
Budget Like a bank Manager
It’s kind of boring, but if you want to always have money in the bank, you really do need to take budgeting seriously. You need to sit down, click on quicken.com/budget-calculator, and start calculating your incomings and outgoings. Then, you need to change things up so that you always spend less than you make. Doing this doesn’t mean you can’t have any treats, just make sure they’re built into your monthly budget.
If you’re self-employed, whether as a freelancer or the owner of your own business, you need to do whatever you can to ensure that your clients always pay and that they pay on time. Here are some tips to help you do that, but if that doesn’t work and a lack of money is starting to become a problem, check out factoringcompany.net, where you can sell your invoices for a quick cash injection. Just because you’re self-employed, doesn’t mean you should settle for being short sometimes.
Start an Emergency Fund
Everyone should have an emergency fund – a pile of money that they have set aside to cover those unexpected expenses we all experience from time to time; things like car repairs, broken appliances and medical bills. By putting aside a small percentage of your salary each month for this purpose, you’re less likely to be caught on the hoof and have to get into debt or use up all of your savings to pay for something out of the blue, leaving you short of cash for who knows how long after.
If you have savings, then you’ll never be short of money, even when times are hard, and the best way to ensure that you do save regularly is by setting up an automatic payment so that a percentage (as much as you can afford) of your pay is immediately sent to savings upon receipt. That way, you won’t miss it so much, and you won’t be tempted to forfeit saving in favor of a new dress or something shiny!
These tips and an abundance mindset will help to ensure that you always have what you need, but only if you actually put them into practice!