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Believe it or not, your income doesn’t have to be your sole focus when it comes to improving your finances. Many people fixate on their salary and wish they were earning more money, but your salary is only one aspect of financial stability. In fact, if your end goal is to increase your wealth then there are plenty of other ways to make that happen. You can keep striving for that promotion or pay rise at work, but there are other fiscally responsible moves you can make to improve your finances in the meantime. Here’s how to improve your monetary situation without increasing your income.
Take Another Look at Expenses
If you don’t have a budget for your personal finances then it’s about time you changed that fact, as I’ve suggested before. It’s important to keep track of your expenses so that you know how much of your income you need to set aside for the costs you face in life. Rent, utilities, food, gas, and many other costs that you face on a monthly basis are unavoidable. You need to figure out how much money you have to set aside for those things and how much money remains afterward. Avoiding tempting purchases is the first step to increasing your available wealth. If you really want to buy yourself a treat then set a reminder on your phone to go off a week or two after seeing the item in question; you’ll probably find that the moment has passed.
Of course, if you’re struggling to cover the basic costs of living then you might need to take a smarter and more organized approach to the necessities you have to buy. You could save money on groceries by using coupons or even growing vegetables in your own back garden. You could also save money on gas by taking it in turns to car-share with work friends. As for debts (from car or house loans, for example), you need a structured plan in place to manage your repayments. You might even consider consolidating student loans if you’re struggling to cover repayments. It’s important to keep on top of payments for the money you owe if you want to avoid high-interest rates and protect your finances.
Save Your Money
Reducing costs is one way to improve your finances without increasing your income, but another smart way to protect your money is to continuously set aside a small percentage of your earnings. Set up a standing order to transfer money from your main bank account to a savings account on a regular basis. That way, you’ll steadily build up a financial safety net that could help you in the future. You won’t be earning any more money than usual, but it’ll certainly feel like it when you check your savings account a few years or decades down the line when you need it. Improving your finances is about thinking ahead.
I’ve done all the things! Girl, I’ve washed my face. I’ve trashed everything that doesn’t spark joy. I’ve walked the baby steps. I’ve cried. I’ve prayed, but my perfectionism has really held me back.
Perfection Hangover can be crippling. Stop comparing yourself to others and start living your best life! That’s why PH exists! I want to encourage you to take control of your money, your blog, and your business.