How To Budget When You’re Penniless?
The trouble is maintaining a budget when you have an awful time with finances. At this stage, you must have mounting bills and no funds to meet those bills.
Take immediate action
Do not ever become heartbroken and ignore anything. Contact the creditors immediately and ask for a payment extension. When you skip your payments, the situation worsens, you will load up with debts, and your credit score is affected.
Select the bills that need immediate payment.
As we all know, some bills must be paid to stop you from facing other problems, mainly with your residence; therefore, schedule those payments based on your weekly or monthly income. You must negotiate with the bill companies and ask them for late payments or to make payments in installments. They must be aware that they are paying strict attention and not neglecting anything.
Ignore savings.
I mentioned the importance of monthly savings from your pay packet in the budget settings. But now, at this stage, we cannot give preference to it, and it has to be removed temporarily from your budget.
Exercise mind control
I was a big spender during my early years of marriage, and my partner has never stopped me from buying unnecessary things. I didn’t have anyone to question me, and I was working and making reasonably good money, so shopping was my real fun, especially clothes and other personal stuff. After years passed, I realized that I was wasting money, thinking I must stop it. So, I began to stay at home without going to shops, which helped me reduce my unnecessary expenses. If you have spent a lot of money in the past and accumulated lots of debt, one of the ways is to stop going to places where you will be tempted to spend money. You can develop a passion without spending money and spend your time and enjoy yourself that way, which will help to reduce your expenses.
Always use cash for purchases.
Many people are trying to come out of credit card debts; one of the reasons they have fallen into debt is using the credit card for all their purchases. Using a credit card to buy things doesn’t make you feel guilty or scared, but when using cash, you will feel uncomfortable and cut your purchases. You will think you don’t want to give all the money in your wallet, as you always want to carry cash. Therefore, stop using credit cards and use some money for your purchases; that will be another tip to help you save money.
Negotiate Credit Card Interest Rates
Do not hesitate to ask us for a lower interest rate than you are paying now. If you have maintained a good record, your request might get approved. So that way, your credit card loan gets reduced slowly.
Take time to decide on your purchases.
When you see something you like to have, quickly sit back and think, let me wait to discuss this with my partner to know whether it is a good product for me. When you give yourself time to decide, you might conclude that the product is not great, and I am happy you have not purchased it. When decisions are made immediately, especially with money, you are bound to regret and not want to give it back also. So, the result is the money wasted on an unwanted item. If we all learn to control our minds, our lives will be filled with joy.
Find a new income
If you have a 9-5 job, you can always do some freelance work from home. Say, for example, if you are good at writing, start to write articles for websites that pay you. At this stage, you have financial difficulties. You need to have a second job to make extra income. If you do that consistently, you might get some relief from your debts and see some success in the future. With that in mind, you can make a lot of money. The main issue here is that whatever the changes you face, whether good or bad, always work towards your goal of not spending money unnecessarily.