Strategize on how your money flows
If your expenses are greater than your income, your upkeep will be your loss.
A sure way to financially deactivate yourself is to spend more than your income.
If your income is $ 2,500 a month, you can’t spend $ 3,500 a month and come out a winner.
An old friend said, “You can’t borrow yourself rich.
We have “wants” and “needs”. Needs should always take precedence over wants. We need food and shelter, transportation and basic public services to survive.
A person with a small income has great financial pressures and has to live on a strict budget. The person with a lot of income still has to figure out a budget. The principal is the same for the person who has the most income. Your expenses should not exceed your income. If you earn $ 9,000 a month but spend $ 10,000, you are going to find yourself in financial difficulty.
With a very low income, even the most basic needs become a luxury. Keeping the house warm or cool is a luxury. It is difficult to buy good or healthy groceries. Buying gasoline to go to work is expensive. If you have access to a credit card, the pressure is great to put basic needs on the card, but the exorbitant fees and interest from the credit card companies are starting to quickly escalate your financial burden.
Your choices are few when it comes to establishing a good family budget. Let’s look at a meager budget. Let’s say your income is $ 2,000 per month. You can afford the following: $ 500 per month in rent, $ 250 per month in utilities, $ 250 per month for payment for a used car, and $ 150 per month for gasoline. That gives you $ 850 a month to buy food and get basic car insurance. You will have to go through your state’s health insurance program and apply for “free” health insurance because you cannot afford to buy health insurance. You also have to figure out how to make more money. You have to work hard where you are and do good to get a better paying job. Or, you have to earn extra income through a second job. With soaring inflation our country is facing, these numbers are under intense pressure. Consider living as close to your job as possible to save on transportation costs.
If your income is $ 5,000, $ 10,000 per month or more, your strategy is easier. Your main goal should be not to buy a house or a car that increases your income to the maximum. You don’t need stress. Budget so you can afford to take a vacation or have a game day. Life is short! Enjoy it along the way. The way you budget and spend your money can make you financially unstable or you can live with a sense of financial security.
Dr Glenn Mollette is the author of 12 books including Uncommon Sense. His column is published weekly in more than 600 publications in all 50 states.