Here Peter Hanley looks at Money problem solutions and ways to work your way past the poverty trap and feeling like a loser.
Money problems happen to us all
Never feel alone in this, a large part of the population experience some king of financial pain either often or at least occasionally.
Let’s not confuse this with Desire problems and lack of money. We all want a better house, car or holiday and this never stops.
Even the very rich want to go out on a limb and express an extravagant need, Plane, Yacht or even a supermodel.
We need to live within our means to stop money problems.
When you can’t pay the rent, buy the kid’s school shoes or eat at the end of the week you have to change something.
So what are your choices?
- Change jobs
- Get a side hustle
- Take on overtime
- Reduce expenses
- Alter your lifestyle
- Re-home the pets
- Have an emergency savings account
Everyone has different needs
It should be accepted that we can only generalise here because we are all different whilst being the same. I often notice that those with less often have lots of pets, Dog, a couple of cats, rabbit whatever they need but they do have a big associated cost.
Food, litter, treats, vet bills, immunisation and even council fees to register her. Works out to be about $1000 or more a year ( at the least) after-tax money.
Two cats and a dog are going to cost you in the region of $5000 a year after-tax money or say $7500 a year in earnings.
Cut out the extravagances off life.
Having a couple of cups of coffee a day. Where I live a takeaway
Snacks, cool drink and other sweet bits
You don’t need them, they are not good for you they mean more Doctor and Dentist visits and another couple of grand without affecting your lifestyle.
First of all, I am no martyr in this and as guilty as anyone but I do try and be reasonable with my excesses particularly relating to health. So if you are not annoyed with me by now let’sts move on.
What can be done with your day job?
Should you have no choices for change then you need to consider another occupation.
It is understood and in
Ask for a pay rise! Importantly don’t ask because you need more money, ask because you are good at your job and you will contribute to better results for the firm.
Work some extra hours, a bit of overtime always helps.
Do some training to step up to a new position. There is online training for anything these days and mostly for free.
Bonuses for performance, tips, gratuities and other cash forms are all a help.
So let’s talk about a second Job
Weekend work generally pays well and stops your spending at the same time. There are all sorts of examples from stocking shelves in supermarkets
to Waiting on tables on peak days.
A great new opportunity is in Air tasking if that is available in your area. Work out what you can do and go for it.
You can make things and sell them online or at local markets
There is always an opportunity to pick up trash from others and turn it into treasure.
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- Social media retargeting.
- Instagram advertising
- Linked in marketing and advertising
- Social media expansion
- Email marketing
- SMS marketing
- Affiliate marketing
- Amazon sales
- Building web pages
- Web SEO
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- Setting up shopping sites and maintaining them
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In conclusion, I say manage your money daily
Save enough for three months of living and put that aside in an account that you don’t raid on binge days. This is your back up for crisis times and should not be used for any other reason.
Then save a little for social activities and holidays in a separate account that can be used along the way.
I know that credit cards can be great but the debt is unforgiving at extremes of Interest that no one can afford, cut them up but if necessary just maybe leave one for emergencies but pay it back in time.
The after pay trap. This is a new experience and like credit cards can cost you everything. However, my wife uses after pay for present shopping online. We have a bundle of kids and grandkids so always a birthday around the corner. Shopping early and planning the payments works really well but you must not miss a payment.
Finally living in debt is a terrible time, therefore take the necessary steps to avoid it at all costs.
Most of all control the money problem solutions rather than them control you.