Living Well Spending Less
How To Take Control of A Runaway Cash Flow in 3 Easy Steps
With all the good intentions you stick diligently to your budget and even manage to save a bit of money. But there are those moments when a cash flow disaster strikes and you’re simply unable to string enough together to cover your expenses. Fear not, this happens more often than you know as the world economy is finding it hard to get savings levels up to what it was in 2005, for example.
But how does this solve the financial dilemmas when they come knocking on your door? We explore a few ways consumers relieve the pressure of their cash flow crunch.
1. Clear Out the Luxury Spend First
Sure, it’s important to look good and feel great but being able to meet monthly financial commitments is even better. Economists fear that the debt cycle is largely caused by the inability to differentiate between necessities and luxuries. What is even more worrisome, is that even those who find themselves in countries known for lower income and below average living conditions, still have funds to spend on splurges such as recreation and alcohol and tobacco.
That is a sobering thought and leads to the question: do consumers know what luxury items are? Some of the things you can safely clear out of your schedule for a few weeks until you get back on your feet include:
✓ Traveling and entertainment
✓ Coffee and restaurant dates with friends
✓ Salon appointments
✓ Clothing and accessory shopping, and more.
Don’t forego these things forever, however, do take caution not to let it determine your spending patterns.
2. Apply For a Loan If It’s a One-Off
The engine seized in your little VW bug and you simply can’t afford to apply for finance for a new one. A loan for a new engine might just be a better option and will not stretch you to the edge of your budget capacity. The reason is simple. According to Moneybanker, personal loan providers give customers access to loan types that are payable at low-interest rates over a reasonable period of time. Conduct thorough research to obtain a comparison of the best loans on offer from the various institutions to ensure you select the right option for your personal lifestyle.
3. Reward Yourself For Sticking to Your Tight Budget
There are few things as satisfying as being frugal for a little while to enjoy the benefits later. When you find yourself back on your feet, remember to spoil yourself. Book a day at the spa or go for that dinner at the new restaurant. This will not only encourage you to keep up with your budget but will also allow you to truly appreciate the finer things in life. There is no reason why a splurge should put you over the edge again if you’re managing your expenses tightly.
For those in-between moments where you have to be frugal and splurges are just not an option, how about doing a few fun things that hardly cost a dollar? Take a walk in the park or on the beach, treat your friends to a picnic with delicious homemade snacks, or even take up a hobby such as old furniture restoration. Living well spending less… remember whatever it is, enjoy the moment and don’t just wait for when those finances level out again.
Thanks a lot for your precious time
Take good Care of your Pennies!
It’s not rocket science, but it is harder than we think….
This post is coming at right on time for me. I need to break my Starbucks routine, it’s gotten out of control!! Thank you! I’m going to take these tips under serious advisement and apply them to my monet saving plan
Hi, Jacqueline, I guess I am very lucky that there is no Starbuck’s here (yet), I am sure that would be my ruin too. 🙂 I am sure, it will not take too long to get the first Starbuck established over here, so I will take your comment as a serious warning …LOL Thank you so much for stopping by!
Simple and to the point. The tips are good especially the tip to reward yourself. We can get so obsessed with being frugal that we forget the small things that make us happy. Usually I go to get my nails done or have a nice lunch out once a month.
Hi Jennifer, thanks a lot for visiting and even more for taking the time to leave a comment! Yes, you are right. I am the same, I need a little reward or treat now and again, too. As you mentioned your nails, even less than getting them done, sometimes buying just a new cool coloured nail polish can make my day. It definitely is the little things in life that make us happy. How many mega riches do we see ruining their own lives with drugs and worse, shouldn’t they be mega happy instead if money and luxury would be the key to happiness??