Many of us are familiar with the situation when there are only a few days left before payday, but there is no money left in the bank account.
It is becoming increasingly difficult to pay off loans, utilities and food, and we are starting to think about how to live not from paycheck to paycheck.
The first thing you need to do to get rid of this problem is to make a budget. To understand where your money goes, you need to control your expenses.
Write down your income and expenses for each month, including all purchases and debts. This will help you understand where you spend more money and identify opportunities to save.
The second piece of advice is to reduce expenses. Figure out where you can save. For example, you can refuse unnecessary expenses on coffee in the morning, remove subscriptions to expensive magazines and channels, switch to cheaper mobile operators, swap the gym for running in the park.
You can also consider exchanging your apartment for a cheaper one, reducing communication with unnecessary people, and refusing to buy a new gadget every month.
The third piece of advice is to engage in your financial education. You need to learn more about financial investments.
Investing offers great potential for return on investment if you use the right investment vehicles.
There are many free online courses on finance and investing available these days.
The fourth piece of advice is to start building a financial reserve. You need to learn to put aside a certain amount of money each month for unexpected expenses.
Start with a small amount, but over time grow to 6-12 months of salary. This will allow you to be confident in your money and not worry about its lack.
And finally, the fifth piece of advice is planning your income. It is important to keep in mind replenishing your savings and learn how to earn additional income sources.
You can sell unnecessary things on freelance sites, get temporary work, write articles for online media, do homework or consult people.
As you can see, there are many ways to avoid living paycheck to paycheck. Being successful and rich is not just a matter of inheritance or luck.
This is the result of smart financial decisions, planning, saving and investing. In a few years, you will notice that you are living a completely different life.
Earlier I talked about what will help you advance in your career.
