You are working hard and are earning good amount of money but you are broke most of the times. This may be because you have bad financial habits.
Let’s break down these habits to you and give you practical solutions that will ensure you have some cash in your pockets.
Paying your bills late
Paying your bills late will attract penalties that can be as high as 10 to 20 percent of your monthly bill.
You could save yourself by paying your bills on time. You can do this by setting up calendar reminders through your phone or email to alert you when these bills are due. Another way is to put your money in different envelopes that are clearly labelled for specific purposes immediately you get the money.
If there are certain bills that you can not manage to pay on time may be because they fall due before you earn, you can discuss with the company to set a new date for you.
Banks usually charge some fees at the end of the month if you have insufficient funds in your account to cover the monthly ledger and other charges. Charges may also be as a result of overdrafts.
Ensure that you have sufficient amount in your account to cover the ledger charges and avoid overspending that makes you go for overdrafts.
You can also consult your bank manager to help you pinpoint where the bank charges are coming from and to suggest to you how you can eliminate them
You may be having the habit of taking a loan for everything you want to purchase. You may be overloading your credit cards and not paying them off at the end of the month. The interest charged on loans is an expense that you can avoid.
To break this habit, you can create your own funds from which you can borrow in case of emergency. Do this by saving some amount every week or every month. Do not withdraw from your savings unless it is extremely necessary or can not be avoided.
Overspending is a very bad habit. It drains your finances and leaves you with no alternative but to go for a loan.
Overspending may be as a result of the fact that you don’t keep track of how much you have spent.
There are various tools that can help you track your expenses online or with an app on your phone. You can visit DailyCost.com, Vest.com, LevelUp.com, etc. to help you manage your finances.
Spending money immediately you get it
Do you spend your money as soon as you get it without sitting down to plan and even to consider putting some aside in form of savings? This might be one of the reasons why you are always broke.
Whenever you get your pay, start by clearing all the overdue bills then the ones that are due. After that you can set aside some amount as savings then the rest you can budget with to take you through to the end of the month.