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January 5, 2018

Changes You Can Make When Your Income Doesn’t Cover Your Current Expenses

Simple. Thrifty. Living.

Managing your finances can feel like a full-time job. Whether you freelance or have a steady income, it’s important to stay on top of your financial situation in order to plan for spending, savings and debt repayment. However, no matter how careful you are, there are still times when your income doesn’t seem to cover your current expenses. Here are some changes you can make to cut costs.

Take a look at your current bills. Are there any excess expenses that you can cut out? Obviously, you have to pay off your debts and pay your utility bills and other essentials, but expenses such as a monthly gym membership might have to go. You can always cut out a few expenses like this and then revisit them once you have a better handle on your finances.

If you are able, try to pick up some extra work while you’re juggling bills. Maybe you can clock in extra hours at your current workplace or find a part-time job in an area where you have experience. This extra money can all be put toward paying off your debts or covering extra expenses.

If you don’t have one already, come up with a plan for paying off your credit card debt in the smartest way. Credit cards charge different APRs (or interest rates), and you want to pay down the cards with the highest rates first. Figure out how much money you can allot to credit card payments each month, and try to pay more than the minimum on cards that have an interest rate over 15 percent. This will help you reduce the overall amount of money you are paying in credit card bills over time.

These tips can help you manage your finances and catch up with your expenses when your income seems too short to cover them. Over time, you can bounce back and start setting aside money for savings in order to get ahead!

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