Showing posts with label Balance Your Income. Show all posts
Showing posts with label Balance Your Income. Show all posts

Tuesday, September 13, 2016

Pocketbook Magic: 4 Tips to Balance Your Income

One sad fact about modern life is that many people are buried under crushing debt. According to CNBC, 80 percent of Americans are living in debt. 

However, if you take precautions, living debt free is very possible. Below are four tips you can use to balance your income.

Start Saving

If you have inconsistent income, there will be times during the year when you come up short when trying to pay your monthly expenses. 

If that is the case, you need to have savings to act as a cushion for expenses that cannot be covered due to emergencies or income shortfalls. Start multiple savings accounts for things like medical bills, repair bills as well as miscellaneous expenses. 

Try to eventually have a few thousand dollars in each account to insure you’re always protected. When the funds are spent, replenish them.

Buy Used Auto Parts

You should also be trying to implement strategies for saving each month to insure your income will cover expenses. Get used to buying things used. 

They often work just as well as new items. This is often the case for auto parts. Some companies, like U Pull & Pay, know that many different car parts are quite exorbitant when purchased new. 

However, if you obtain them slightly used, you will save a significant sum. If your car has already deteriorated in value, buying used parts should have no impact on the value of your vehicle.

Base Your Budget on Income

Even if your income tends to be somewhat inconsistent from month to month, you still need to budget your expenses. 

To do this, try to create a budget based on an average monthly income. Do this by adding multiple months of income and dividing the total by the number of months used. Don’t use less than three months. 

Alternatively, you could also choose the lowest income month to budget off. If you make more than that low income month, save the difference.

Remove Unneeded Expenses

If you want to insure your income remains balanced, one thing you need to do is remove monthly expenses that don’t actually represent necessities. 

There are often alternatives you can obtain for free. For example, you can rent DVDs and Blu-Rays from your local library as opposed to paying expensive prices for movie theater tickets.

Even with inconsistent monthly income, there are still ways to prevent your family from going into debt to make up the difference. Use the four tips above to balance your monthly income to insure you have enough to live on as well as some left over to save.

Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics