6 Ways to Avoid Being Broke As an Adult

When you were young, and you had an allowance, you probably spent it all on one trip to the convenience store or comic book store. Then you were broke for a week until allowance time came around again. When you were first starting out in your initial work life, you were probably broke every week until payday, because you didn’t make enough money to do all of the things you really wanted to do. Now that you’re in midlife, or you are entering retirement, you find that things haven’t changed. You are still living from paycheck to paycheck–and you know that needs to stop. Here are six ways you can use to avoid being broke as an adult. 

 

Think About Adding Income

One way to avoid being broke as an adult is to add streams of income to your budget. If you are a senior, you might want to think about a reverse mortgage. Reverse mortgages, such as All Reverse Mortgage ™ allow you a constant stream of income. With a reverse mortgage, you can receive cash for your home now–either in a lump sum or in a monthly payment. You also won’t have an additional bill added to your list with a reverse mortgage. There are other options for adding additional income to your budget, such as part-time work. If you generate more income, you may have money left over at the end of the month. 

 

Time to Analyze Your Spending

If you make a good income each month, and yet you are living from paycheck to paycheck, it is time to analyze your spending. Begin by writing down every purchase or expense you have. Many people keep a notebook so they can write down their expenditures. Once you have written down your spending for a month, take a good hard look at it. There may be places you can conserve money. Analyzing your spending helps you figure out why you’re broke each month. 

 

Cutting Back

Once you’ve looked at your spending habits, you can then begin to cut expenses. There are plenty of ways you can cut back on expenses without really cutting back on your lifestyle. For example, you can stop going out for lunch with your work friends every day, and bring your lunch instead. Take one day of the week to eat out. You might also be able to stop running in for coffee every morning, and bring a cup from home, or take advantage of office coffee. Once you begin looking at ways to cut back, you’ll be surprised at how much money you can save. 

 

Look At Your Monthly Bills

Believe it or not, there are monthly bills you can cut back on. Take a look at your cell phone bill for example. There may be unnecessary charges you can reduce, such as having a new cell phone each year. Also, you might be able to shop your other utilities around for a cheaper rate, especially if you have a natural gas bill or an electric bill. This is also a good time to look at your insurance company rates. If you have a good driving record, you may be able to save on your car or home insurance. Cutting back on your monthly bills can really start to add up to additional money in your pocket. 

 

Time to Get Rid of Debt

If you have debts that are high interest, such as credit card bills, you may want to negotiate with companies to reduce your debt. By negotiating with credit card companies, you can work towards paying down your debt more quickly and reduce the amount of money you owe them each month. This will help you avoid paying on debt with progressively higher interest rates. Start with the bill you owe the least amount of money on and get rid of it. Then you can put that money toward your next highest card bill. Over time, your expenses will get fewer, and your income larger. 

 

Ask for More Money

This may seem simple, but one great way to generate money is to ask for more money at work. You might be able to ask for a raise, especially if it has been a while since you had one, and you have done exemplary work. It can be worrying to ask for a raise, but if you get paid more, there’s less chance you’ll go broke at the end of the month. You may found out that the pain of asking for a raise is eased if you start making more money. The sooner you make more money, the easier it will be to stick to your budget. 

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