The world is going through a supply chain crunch and items cost more right now. The inflation rate has increased and it could put a crunch on your personal budget. This could be the norm for awhile and it may have changed your spending or saving habits.
Here are some warning signs that it’s time to modify your budget.
Increased Credit Card Balance
We all know how easy it is to let ‘future self’ deal with paying for a nonessential purchase. You just pull out your credit card and figure that you’ll cut something else out to help pay for it. Well, the interest for that purchase hits and you continue to just pay the minimum amount to not ruin your budgeting plans. It’s time to start paying down that balance.
You can start by making a spreadsheet with your expenses. It helps to figure out where some of the extra money goes. You could pack a lunch to work a couple times a week to help save the money to put towards your debt. You can learn more ways to budget at debtconsolidation.com.
Stop Dipping Into Your Savings
You’re not getting any younger and your retirement age gets a year closer every year. I know retirement seems like a thousand years away if you’re in your 20’s, but the sooner you save and invest, the more comfortable you’ll be in retirement. You must be disciplined with your budget and only dip into your savings for emergency situations.
If you do take money out of your savings for an emergency, try to pay it back in as soon as possible. It could set back your retirement plans by a few months if you take your time putting the money back into savings.
Stop Living Paycheck to Paycheck
The ‘paycheck to paycheck‘ lifestyle is hard to kick and it is something many learn from their parents. You need to visualize your spending in a spreadsheet and figure out how you can save money, or if needed, you may want to pick up a part-time job on the weekends to help put money back.
An added revenue source can kickstart your new budget plans, even though it will limit your free time. I would suggest trying to turn your hobby into a money-making venture. If you collect sports cards, maybe go to cards shows on the weekend and pick up some deals to flip on eBay. If you’re passionate about re-selling in general, I would suggest going to some thrift stores after work or on the weekend to sell on numerous online platforms like Mercari or Depop. It has never been easier to earn money outside of your day job.
If you fall into any of these three categories, I hope you will look at your current budget and look to modify it to help fix any of these issues.
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About the Author…
Bobby Roberts (otherwise known as Sweetbob) is the creator of ‘America’s White Boy’ and contributor at Project Shanks. His writing has been featured on ESPN’s ‘SportsNation’, Sports Illustrated’s Hot Clicks, Guyspeed, and various other sites. You can follow him on Twitter at @Sweetbob.