We all face money problems in our lives. The lack of money can be a nuisance or, for others, even life threatening. Its something we all face. However, not many people actually do something about it. If you watch the others in your life, you will notice that most people repeat the same cycle in their life – money comes in, its all spent, money runs short until next pay day, cycle repeats. This leads to a life of money problems that never seems to get fixed. They bleed money left and right. This bleeding keeps them in the cycle. To solve money problems, you first have to stop the bleeding.
How to solve your money problems
The most important thing you have to do when you are in this critical situation, is to stop spending money on unnecessary things. Only buy things that are a MUST in your life. These include:
- Rent or house payment
- Utilities such as electricity and water
- Other bills (loans, credit card payments, etc)
Notice some of the things that are missing. There isn’t any entertainment, cigarettes, alcohol, mobile phones, new clothes, etc. When we are having money problems, those things are out of the picture. We have to focus on what is necessary to pay and then use the money left over to get us out of debt or find ways to generate more income. The simple fact of money problems is there are only two ways to solve them –
- Reduce your expenses
- Increase your income
That’s it. There are no other ways to resolve our own money issues. So the first step is reduce the things we spend money on, cut the expenses. Cut out all but the most important. Here are some tips on saving money and here. After that, find ways to increase your income. Part time jobs, working extra shifts at your current job, loan out money, invest in a small business. etc. These are all examples of ways your increase your income.
We all have these money problems in our lives. But we also have the power to get them under control and break the cycle. But first, we have to stop the bleeding.