Let’s start by taking a look at Joe Blogs. We can ask why Joe might be constantly looking at his or her bank accounts and hoping that X will pay Y and Z for the weekly grocery shop. When the income gap is smaller, money management can become a problem. You might consider credit cards, overdrafts or mortgages.
Although these credit options may look appealing given the current economic situation, they are not sustainable. If a company is losing money, it is not worth borrowing additional money unless the financial push opens up new income streams. Joe Blogs’ case, the money will be used to pay household bills. It doesn’t affect the negative balance of the house but delays it.
You may now be wondering what the best solution is for this problem. It’s actually much simpler than you might think.
You can’t manage your money responsibly until you find another source of income. Make your expenses smaller than your income and start saving the difference. You can do this by switching to cheaper food brands, cancelling your phone contracts, living without Sky for several months, and remembering that the lights must be turned off when you leave. These simple tips will help you reduce your monthly expenses and allow you to save money for the future.
You can now focus on increasing your income by managing your money well. It doesn’t matter if you only save a little each month. As long as you don’t spend more than you earn, you will be fine. You’ll be able to pay more if your bill goes up than you can afford.
Put all your efforts into finding additional income that provides the comfort level you desire. You’ll soon be able to resubscribe to Sky and experience the finest Waitrose products.
For responsible money management, there’s one skill that you need to master: understanding margins. You don’t have to have temporary money in order to be able to spend. You can live a better life by focusing on more than just a temporary income fluctuation.