These problems can lead to real trouble. If you do not make enough to cover your bills, you will need to take steps now to increase your income. Even if you feel that you are too poor to make a plan, a budget can help you get back on track. Learn seven signs that you do not make enough money—and seven solutions to counter them. Solution: Stop using your credit cards It may seem difficult to stop using your credit cards when you don’t seem to have enough to cover your basic necessities. But switching to cash for your daily purchases can help you limit what you are spending. Solution: Cut your lifestyle Cutting your lifestyle means trimming back luxuries across the board. It may mean taking your cell phone plan down to the bare minimum and canceling cable television. Instead of eating out, cook at home and stick to a tight grocery budget. A night watching a movie may need to be a rental at home instead of going to the theater. You can still enjoy life on a tight budget, but you need to be careful about how you spend your money. Finding a new job may be the best way to increase your income. However, taking on a second job or working side projects can help you pay down debt and build up an emergency fund so that you can do more than tread water. If this is going to be a long-term issue, then you may want to consider going back to school so that you can qualify for a higher-paying job. Solution: Set up a bare-bones budget A bare-bones budget goes beyond cutting your lifestyle. It means that you only spend on necessities and quit spending on luxuries altogether. This means instead of buying the steak at the grocery store, you go with the hamburger meat. It means that there is no eating out and you do not buy anything new unless you absolutely need it, no matter how good the deal is. Generally, this is a short-term budget that can help you get by until you do something to improve your situation. Solution: Set up an emergency fund It may sound crazy to set aside money each month if you are struggling to get by, but having money to cover your emergencies can bring peace of mind and allow you to focus on other goals and issues. You can start with just an extra $50 per pay period and build up from there. Work to have between $1,000 and a month’s worth of income in your emergency fund. Solution: Stop dealing with your finances in panic mode A budget allows you to plan out your purchases ahead of time. An emergency fund allows you to cover unexpected expenses. Increasing your income creates more margin in your budget. If you are moving from financial crisis to crisis, you will not make traction on your goals. Utilizing these tools will make it possible for you to create and stick to a financial plan. Solution: Make sure your goals are achievable Making a goal to get completely out of debt in a year may be a great one, but if you have close to $30,000 in debt and you only make $40,000, this may be impossible. Make sure the goals you are setting are achievable and specific. It may be paying off one credit card by the end of the year or it may be sticking to your budget while working on your debt. You can begin to make real changes in your finances a step at a time.
