Feeling like you’re constantly struggling with money can be really stressful. Unfortunately, this is the reality for many people who find themselves constantly staring at low bank account balances.
If you’re one of them, there may be many reasons beyond your control, including inflation rising in recent years and wage increases not keeping pace. But while there are some situations where it’s really hard to fix a deficiency, there are some steps most people can take to stop feeling so broken all the time.
In fact, here are four you can try.
1. Track your expenses for 30 days
Do you know how much you actually spend or where your money goes? A study from the Mint Showed that 65% of Americans Had No Idea How Much Money They Spent in the Previous Month, and Close to 1 in 3 (31%) Wish They Spent Less.
Figuring out exactly where your money is going is the first important step in taking control of your finances. This can help you know where you’re starting and guide you on changes you can make to improve your situation. Try using a budgeting app to see where you spend all your money each month.
If you have credit card debt or other high-interest debt, it can leave you feeling broke because you’re sending a lot of your money to creditors. Of course, you’re paying interest, but your current income is also going towards your past purchases, so you don’t have much to spend today.
When your debt is very high, start by seeing if you can refinance or consolidate it. This will involve getting a new loan at a better rate and paying off more costly debt. If you use a personal loan for consolidation, you’ll have a fixed monthly payment and a set payment Plan, so you’ll be absolutely debt-free. Moreover, paying off your debt may be more executive for you.
3. Cut fixed costs
Making Tons of Small Cuts in Spending and Depriving Yourself of Everything That Brings You Happiness is a big reason why you’re feeling broke. But it doesn’t need to stay this way.
Instead of Trying to Cut Down on Small Things, you should like to cut down on your Fixed Expenses and Keep them as low as possible. Fixed Expenses Are Costs That You Have To Spend Every Month LIKE YOUR BILL OR DUE TO PAYMENT. If you can keep all your fixed costs at around 50% of your revenues, that leaves you with the remaining 50% – 30% you can spend on Everything and 20% Save for Your Future.
One of the biggest benefits of reducing fixed expenses is that you only make a change once and then you continue to benefit from it. In the long run, is it easier to save $100 a month by buying and driving a cheaper used car one time or by giving up your favorite coffee every morning, skipping lunch at work every day, and not going to bars with friends? every weekend?
4. Focus on increasing revenue
Finally, perhaps the biggest change you can make if you’re feeling broken is to focus on increasing your income. If you could ask for and get a raise, move to a better-paying job, or get promoted by learning some new skills, you’d have a lot more money to spend, which always makes it easier not to feel bad. Additionally, a higher income will allow you to both pay off your current debt and save for your future goals.
Give these techniques a try and see if they help you feel better about your financial life and leave you with more money to do the important things.
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