Surely you have wondered on more than one occasion how you can do to make ends meet. Your income, which once seemed enough to cover your expenses and commitments, suddenly is not enough for you. The reasons for this situation can be very diverse, although they can generally be reduced to the fact that you have lost control of your expenses and have probably acquired debts that you cannot cover.
In general, if you do not keep a strict and regular control of your income and expenses, most likely you will go astray in search of a better financial situation. It must be taken into account that we live in a world that all the time exerts great pressure to acquire and possess goods and services, advertising bombards us at every moment, and if you are not clear about your real financial situation, chances are that you make wrong decisions regarding your money.
In addition, if you do not have an emotional balance that allows you to control yourself under the influence of the outside world (which includes family and friends), you are much more exposed to any economic disaster. For example, if your neighbor changes his car, and you turn green with envy, and you run to the nearest dealer, and you get into debt with the excuses that "I deserve it", or "there I see how I can afford it" or "if not, I can never change this old car." Another example could be that to “shield” your father-in-law, and to see the good life you can give to his “little daughter,” you buy him one and a thousand gifts paid for with a credit card. Or if you don't control the excitement that happens to you in front of a shoe store, you go in and out with two pairs, which you didn't needjust because they would look great on the dress you bought last week.
I have developed a number of factors that I think can help you answer the question of What to do to make money work better? Here are some ideas:
1. Change your mindset
In all aspects of life, your mind can be the factor of success or failure. If you handle thoughts like "Money is never enough for me," or "I'm never going to be able to get out of this situation," chances are, in fact, you never will. You must know that achieving wealth is not wrong, it is within your reach, because many people have achieved it, and also, all you have to do is focus on yourself, not change anything external. In addition, you must have enough emotional balance, to know that you can achieve all your goals, but you must also learn to enjoy what you have today, without tormenting yourself for what you cannot have.
2. Prepare your personal budget of income and expenses
This must be monthly, and projected at least one year ahead. You must review it month by month, and you must make the necessary adjustments. It may be an arduous task at first, if you have never done it, but it will surely pay off. As a general rule: Your expenses can never be higher than your income.
3. Meet your budget
A lot of people have a budget idea written somewhere, or in their head, but that doesn't happen. The important thing is to fulfill it. If you misjudge any income or expense category, you will need to make the necessary adjustments and move on.
4. Create your Emergency Fund
It is very important to create an emergency fund, that covers your expenses of between 3 and 6 months, because you do not know what could happen to you. Many times, because you do not have an emergency fund, you can go into debt, or even lose a part of your assets.
5. Reduce your expenses
Many authors recommend to lead an austere, or frugal standard of living, and thus achieve wealth. This seems excellent to me, as long as you do not become a conformist, and that you lose the healthy ambition to seek a better situation.
6. Prepare your personal financial statements
This is a topic that may seem complex at first glance, but you will see that it is not very difficult, since it allows you to have a clear image of what your current financial situation is. It allows you to set goals and review your financial progress.
7. Increase your income
You can do it. Review what you like, what you can do better, your hobbies or your skills that can somehow generate income. If you have a job, do overtime, or look for a raise or promotion, OR look for another part-time job. Or change your job. Invest in a business. Create your company. Use your imagination.
