It’s extremely frustrating when you make a good living but still struggle to get by each month. You look at the amount coming in, and it’s gone in a matter of days. You are susceptible to a financial shock. One unexpected expense could put you further in debt.
If you’re feeling overwhelmed and stretched financially, it’s time to figure out what needs to change and reclaim control of your finances.
Debt has you down?
Even if you’re making a good living now, you may be burdened by debts and repayments from your past. The UK alone owed a whopping £1,640 billion in debt. As a result, it’s not surprising that many people are struggling to make their salary cover all of their expenses.
Even if your salary rises, your expenses rise as well, leaving you less available for debt repayment. Larger homes come with more bills, as well as higher rent or mortgage payments. It costs money to raise a family, and others become financially dependent on you.
You may earn a good living but find that your debts, credit card payments, and overdraft interest consume the majority of your monthly paycheque. If your debts are causing you financial stress, it’s time to consider debt consolidation as a way to gain control of your monthly payments and pay less interest on your debt overall.
We offer comparatively low-interest rates on peer-to-peer (P2P) loans, so you could reduce your monthly debt repayments and free up more of your paycheque. See how much you can save with us!
Do You Have A Financial Strategy?
Failure to plan is planning to fail and it’s a cliche for a reason. In 2018, two-thirds of Britons stated that they did not have a financial plan or budget in place. It doesn’t matter how much you make; if you’re not budgeting and setting financial goals, you won’t be able to stretch your paycheck.
Having a financial plan puts you in control and allows you to decide how to make your money work for you. You can refine your plan to build your wealth once you’ve been budgeting for a while and have a better understanding of how to control your finances.
In addition to paying off debts and saving for emergencies, it is critical to consider investing your money in order to generate an additional source of income, protect yourself from financial shock, and increase your future wealth.
When you become a loan borrower through us, we offer competitively high-interest rates. You’ll be able to see exactly where your money is going while also helping someone else’s financial future.
Not To Overspend
Overspending, impulse purchases, and bad financial habits are all easy to develop but extremely difficult to break. Do you find that when you put everything down at the beginning of the month, you have enough to cover your housing and living expenses, plus some? But what if you’re struggling to make ends meet by the middle or end of the month? This is a warning sign that you are living above your means and overspending.
Fortunately, there are methods for breaking this habit. If you keep a spending diary on a daily basis, it will become clear how much money you are wasting on non-essentials. Make a point of writing down every purchase rather than quickly scanning your bank statement, where everything can easily blend into one.
It’s an eye-opening exercise that will force you to consider areas where you can cut back while maintaining your quality of life. Using cash is another way to limit your overspending. Seeing the money physically vanish will quickly put a stop to any unnecessary overspending.
Budgeting is an important part of keeping track of your finances. Whether you use an app or a good old-fashioned pen and paper, make sure you have a record of every transaction that comes in and out. The more you know, the less likely it is that you will overspend.
So, how do you stop living paycheck to paycheck?
Before you can figure out how to make your money stretch, you must first determine why it isn’t already.
If your debt payments are eating up your monthly income, consider debt consolidation and refinancing to free up some cash. It will be nearly impossible to stay on track without financial plans and an end goal. Make a reason for yourself to save and work hard with your money. Determine your financial objectives.