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!

Klaudia

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