The normal scenario for many these days sort of goes like this. You get up you go to work, you earn your money and you do that for approximately twenty days of a month. You earn an income, you pay your bills and what is left is yours to do, well, what you want with, am I right? However, for many, that amount of money is fixed each month, and even if you had all the will in the world and took on extra responsibility in the workplace or showed initiative, unless there is overtime or bonus to be had nothing changes. So how can you get some extra cash in your pocket each month?
I wanted to share with you some of the things that you could do to help you do that. Small changes, doing different things, every little bit can help to boost your disposable income and give you the life that you want to lead.
When was the last time you checked your bank statement?
The best thing to do first is to print off the last few months bank statements and start to analyze exactly where your money is going. This is a really good exercise as it can be quite naive to constantly spend on your debit card, and it can make you lose sight of exactly how much you spend each day or week.
You may also find that there could be rogue payments and debits leaving your account for things you had either forgotten about or thought you had cancelled. This is an excellent exercise a sit helps you to potentially free up some money straight away.
Lastly, knowing how much your outgoings are exactly gives you something to work with when I raise another point later on in the article.
Time to get a handle on those outgoings
Now you know what your outgoings are each month and those exact bill amounts, this is when you can try to reduce them and bring the overall costs down. Some of the utilities you pay out for each month such as energy, for example, may not be the cheapest way of doing things. Comparing bills such as energy and even insurance providers could help you to see that a lot of companies save their best rates and deals to entice new customers.
Switching over to another provider could really reduce your overall costs. Your outgoings may also need looking at when it comes to other debits like gym memberships or subscriptions, ask yourself do you need them?
Switching and saving, and even cancelling things you no longer want or need can really help free up some income. Then you just have to tackle the other spending you do, which is mostly out of your disposable income.
Let’s sort the debts out
Before we get onto making savings with your spending, there are possibly other bills that you pay out for each month. It might be that you have debts for loans or credit cards that you pay out minimum amounts for each month. But having multiple credit accounts means that you are getting different interest charges and this is what can mount up over time. Tackling your debts and making them a focus can actually help not only to pay them off but to bring down your overall monthly spend. Who needs to pay multiple interest charges when you can pay only one or even take advantage of interest free offers. One f the first things to consider would be your credit cards and switching the balance over to a new provider. A cheaper rate means more getting paid off or could even mean an interest free period to help you pay it off for good.
A look online at providers like barclays could give you some idea of what is out there. Another option could be to consider a loan which could consolidate a few different debts. This gives you one payment, a payment plan to pay it off and one lot of interest charges. However you choose to do it, don’t bury your head in the sand and get it paid off sooner rather than later.
Could you be a savvy spender?
The next thing to think about would be how you spend your disposable income and could you make some changes to how you do it. One of the biggest expenses people have each week is money being spent on food and drink. But often a few changes to your habits can help bring that cost right down. You could think about meal planning, which could help reduce what you sped as you have a list with exactly what you need. It stops the impulse buying and also reaching for the take out menus. Reducing food waste and also shopping your cupboards instead of the store is also a few things you could try to avoid spending money. Cashback sites and looking for vouchers can help bring the cost down as well and this can work not just for food but for other purchases like clothes or meals out.
There are many ways you can spend less, and being a savvy shopper can actually be a lot of fun as well. As you watch your income rise you start to feel more and more motivated to find bargains and make the changes necessary.
Boost your income in your spare time
Finally, could you boost your income in your spare time? The chances are you probably can, and you will have free time to do it. Sat watching TV at night with your phone, you could be filling out online surveys and earning some money as well. Maybe using your social media profile for reviewing things or earning off advertising. You could even turn a hobby into a money maker like a blog, for example. Boosting your income and being proactive helps to produce money for things lie savings or those added life luxuries. So it is definitely worth it.
I hope that these tips help you to have some extra cash each month.