It has been a challenging year for many people, and debt has become a household evil. Many of us can’t cope with month-end, and the worst part of debt is the loneliness and isolation we feel.
We have this idea that everyone else is keeping their head above water, but not us.
The overwhelm takes over, and month-end can be nerve-racking. There is not enough income to cover all expenses, so we need to decide who gets paid and who does not.
Here are five tips that I used during my sequestration.
1. Check your bank balance daily.
2. Pay all living expenses and buy essential groceries at the beginning of the month.
3. Divide what is left by the number of weeks in that month.
4. Limit your visits to the shops during the month.
5. Talk to your family.
1. Check your bank balance daily.
Every day? Checking our bank balance might sound counterproductive; I know I don’t have enough money, right?
Usually, when there is not enough money, we pay out what we have and hope we survive the rest of the month.
By checking your bank balance each morning, you focus on the budget and are less likely to overspend.
2. Pay all living expenses and buy essential groceries at the beginning of the month.
Pay the most significant expenses first: rent, electricity, telephone, and school fees.
Then make sure there is food in the house for the month. Buy all essential food either online or with a shopping list.
After paying for the essentials, you can consider the other expenses.
3. Divide what is left by the number of weeks in that month.
There are expenses during the month that you cannot pay for at the beginning of the month, e.g., fuel, bread, milk, or medicine.
Divide the remaining balance in your bank account by the number of weeks in the month, and use it for your weekly expenses.
I use a bank that can transfer the monthly balance into a savings account and keep the weekly budget in the current account.
A separate account helps prevent spending next week’s money.
4. Limit your visits to the shops during the month.
How often do we go to the mall for bread and milk and walk out with a basket of treats?
It happens to all of us. The only way I could limit spending was to not go to the shops.
Make sure the essentials are in the house, and then don’t go shopping again until you need to.
5. Talk to your family.
Talk to your family or the people you are responsible for. Have a family sit-down, and don’t leave the kids out of these discussions.
Everyone needs to understand the situation and what they can do to help.
You don’t need to explain the full extent of your budget. Just let everyone know that something needs to change, and maybe help keep it in the budget.
Conclusion
These practices have kept me sane for many years, and I still hold to some of them today. I hope they help you cope with month-end in the next few months.
Taking control of your finances does not have to be a chore but rather an empowering decision that sets you up for success.
Although debt and month-end may cause feelings of despair, if you give yourself enough time and the resources to use these coping tips, you can ultimately get back in control and find financial stability.
By following these five tips, you can take the proper steps to overcome any debt and slowly regain control of your finances.
This blog was brought to you by Ursula Gouws.
This blog is for information purposes only and does not constitute legal or financial advice.
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