We all have undergone difficult financial conditions due partly to hyperinflation and the covid-19 pandemic. Amid these, there are also job losses that have affected millions of people around the globe. This has made it almost impossible to go an entire month without seeking some payday advance of any sort. The near-immediate solution for most people is to take out those expensive payday loans. But we wouldn’t advise Kiwis to go this route. These loans are damn expensive and have lots of hidden fees. If you have to take a loan, we would advise using the Payaid app.
Not only does it charge no interest, but it also doesn’t worry you with late fees. The only thing you will pay is a 5% fee, and that’s all. That said we always advocate for frugal living, which means living within your means. In this article, we tell you the tips for ensuring that you live within what you earn and not get swamped into piles of debts. Continue reading to learn more.
1. Create a budget to help you Track your income and expenses
Creating a budget is critical. Fortunately, the payaid app has a tool called BudgetBud that makes the process very easy. The following are the advantages of creating a budget:
It helps you to know all your sources of income. Once you know this, you can work on it to grow it every year. If you don’t budget you won’t even know when your income stops growing.
Creating a budget helps you know what your money is being spent on. Many people spend lots of money on things they don’t need. Tracking your expenses enables you to reduce or eliminate these needless expenses.
A budgeting tool also allows you to see your monthly savings. The rule of the thumb is to save a minimum of 15% of your net income. Without keeping track of your finances, it will be impossible to know the amount you are saving.
2. Avoid consumer debt
Like most Kiwis households, you probably have one consumer debt type or another. Many families have credit card debts, auto loans, and even student loans. This is not the ideal financial position you want to find yourself in. paying those high-interest rates only keeps enriching the banks while derailing your retirement. We advise avoiding consumer debts altogether. If you currently have consumer debt, pay it off as fast as possible. The only cheap payday advance option we would advise is Payaid. It has no interest or late payment fees.
3. Take advantage of cheap or free stuff
Spending money is fun. Who doesn’t love travelling, eating out, and going camping? However, one way to help you manage your finances is to spend less money. The good news is that you can still have fun even without going on a spending spree. There are lots of free or cheap entertainment activities like enjoying hikes, going to free concerts or cooking. Another option is time discount days at museums. It has lots of free and fun things you can enjoy. You might find that they are just as enjoyable as those other people pay a fortune for.
It’s okay to splash the cash once in a while. However, don’t make it a habit. Instead, always be on the lookout for cheap or free entertainment.
4. Find more ways to earn extra income
While saving money is a good idea, it is not necessarily a great one. As much as saving, you also need to think of ways to bring in extra cash.
The day job is the primary source of income for most people, and there is no harm in focusing on that. Negotiate for good raises every year and be on the lookout for better opportunities elsewhere. If the job cannot guarantee an increase in your income, consider moving on.
Side hustling is another great alternative for augmenting your monthly income. If you are in a not-so well paying career, a side job could make a massive difference to your income. And if you have a good side hustle, it can even become your main career, not to mention that it can give you a better satisfying lifestyle.
5. Minimize lifestyle inflation
One of the main reasons people live outside their means is lifestyle inflation. While you can find ways of earning more money, most people’s needs grow with more income. You find that, after your income grows, you will want to drive a bigger car, stay in a more expensive house, and eat out at expensive joints.
You need to picture your house when you were growing up. If a two-bedroom house housed a 5-member family by then, it still could. Make sure that your income is greater than your lifestyle inflation. Stop living it up if you find it difficult to pay the bills.
6. Build an Emergency Fund
Payday advance lenders often market themselves as your go-to financial person if you are in an emergency. But did you know that setting up an emergency fund cushions you from being exploited by payday lenders? If you set aside some money for your rainy day, there will be no need for these expensive loans. Start with putting aside $100 or $200 a month, and after six months, you should be pretty fine.
To arrive at the amount of money to save monthly, take a look at your budget. After that, have an automatic transfer set up, and it will enable you to easily attain your savings goals.
They say that tough times call for tougher measures and this could not have been better exemplified by the current economic conditions. Despite the harsh financial climate, you can keep your finances organized and avoid finding yourself in a pile of debts. The things you need to do include creating a budget to help you track your income and expenditures, setting some money for an emergency, and boosting your income. You also need to curb your appetite for taking those expensive payday loans as they can be a major hindrance to attaining financial freedom. If you have to take out a loan, make sure it is an inexpensive payday advance option like payaid. Available to Kiwis of all cline and color, this app enables you to borrow a portion of your salary without interest or late fees.
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