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Are you earning enough? 5 signs you need to make more money
Are you earning enough? 5 signs you need to make more money
While most of us wouldn’t say no to making more money, there’s a difference between not earning enough and living beyond one’s means. The obvious solutions would be to make more, spend less, or a combination of both. Easier said than done though. Life is usually much more complex than we would like it to be, which calls for targeted tips to specific scenarios rather than the usual generic advice doled out in most articles.
Here are a few common signs that you clearly need to make more money, and our recommended steps to turn things around:
1. You keep maxing out your credit cards every month
Credit cards are an amazing invention: they’re convenient, secure, and a great relief in emergency situations. On the other hand, credit cards are also responsible for the debt culture that’s plaguing consumers everywhere. In essence, credit cards allow us to spend money most of us don’t have, which is the root of the problem.
Do you find yourself struggling to pay off your credit card bills at the end of each month? Do you usually max out your credit limit? If yes, it might be time to re-evaluate your credit card usage habits. This will be hard, but try leaving your credit card(s) at home. You can’t use them if you don’t have them on you. It’s drastic, but practical.
Have you tried using a personal finance app to track your expenses for a better grip on your finances? With Wallet by BudgetBakers, you can spot spending habits and learn to spend on things you actually value, besides creating budgets that work for you, and monitoring your spending in real time. Another cool feature of the app is the ability to sync it with your bank accounts, so you have an overview of your complete financial situation on a single platform.
2. You have zero savings
Saving is hard – there’s always something that gets in the way – but you can start with a small sum. What matters is that you cultivate the discipline of saving every month. It could be as little as $100 a month – you just need to start somewhere.
Allocate a modest amount to transfer into your savings account, and make it the first thing you do upon receiving your salary. Better yet, set up an automatic transfer on the first day of the month so the money automatically goes into your savings account every month. Make it a priority, and over time it will become a habit.
3. You’re usually out of cash before the end of the month
Making a monthly budget isn’t much fun, but it helps to cultivate discipline in your spending habits. It doesn’t have to be complicated either – a simple budget template will be more than sufficient to help you stay on top of your cash flow and make sure you don’t run out of cash before your next paycheck comes in.
We know it’s tempting when you’re constantly bombarded with marketing promotions and special deals, but the next time you go shopping, ask yourself if you really need that thing before buying it. Think of your mounting credit card debt and do the sensible thing. When doing grocery shopping, don’t do it when you’re hungry – that’s when you’ll be most vulnerable to temptations.
4. You’re getting paid less than your colleagues
If you’re getting paid less than your colleagues for doing the same type of work at the same level of expertise and skill, you have every right to request for a pay rise. It can be a daunting experience however, which makes preparation crucial towards ensuring that you present a strong case in your favour.
You might find it helpful to learn how to make a compelling pitch for a salary increase, and you might also want to apply these five principles in your salary negotiation to optimize your chances of success. As long as you can prove your worth, your boss can’t fault you for asking. After all, if you don’t ask, you don’t get.
5. You’re constantly running behind on your bills
Are you always paying your bills late because of your tight cash flow? Perhaps it’s time to re-evaluate your priorities. Instead of paying your bills at the end of the month, make it a habit of paying your bills first, as soon as your salary comes in. Alternatively, set aside a budgeted amount for your bills every month when you get your pay. This ensures that you adjust the rest of your expenses accordingly based on how much you have left after paying the bills.
You could also consider switching to more cost-efficient service providers, besides reviewing your usage habits. If you use air conditioning at home, do you have it turned on at all hours when you are home? Maybe you can limit your usage to sleeping hours to reduce your electricity consumption? What about switching to a hybrid car for better fuel economy? Even simple measures such as cooking at home instead of eating out all the time makes a big difference to your expenses. It’s shocking how quickly the expenses pile up.
Apart from mustering up the courage to ask your boss for a pay rise or getting a job that pays better, it’s equally important to review your spending and saving patterns in order to cultivate healthier finances. Our purchase decisions are usually a reflection of our priorities, and those priorities can be adjusted to curb unnecessary expenditure or bad spending habits.
Related Articles:
Common Excuses Why You Can’t Save Money and How to Overcome Them
5 Money Problems Every Young Professional Can Relate To
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