Strategy Tips for Living in a Lower Income Tier
This article has been written by Todd McCullough, an independent blogger and finance researcher. He represents the financial loan company Wonga.co.za by producing guest posts full of useful money saving and organisation information for various websites.
Most of us would definitely argue that we struggle to meet our daily expenses in our current earning tier, and this is particularly true for those of us whose earning power is tied to a minimum wage position for example. In this scenario it's crucially important that you develop the correct strategy to allow you to live within your means. If you exercise discipline in the following tips you will find that you gain better control over your financial situation despite your modest earning power.
Decide on tangible targets and objectives.
It's common knowledge that it makes good sense to save your money and budget responsibly, however it's also common knowledge that if you exercise regularly and eat healthy meals then you will feel better and live longer... and yet a huge number of informed people still fail to motivate themselves to accomplish these objectives despite knowing it will improve their quality of life. The reason people fail in these endeavours is sometimes due to a lack of motivation, in other scenarios however, the problem is simply that people begin a campaign of improving their finance management but they have not properly prepared their targets to correspond to their strategy. Thus a few weeks into their plan they don't see the results they were expecting and promptly lose enthusiasm and motivation for the whole idea thereafter.
Communicate your progress.
The trick here is to be ambitious but also realistic in the targets you set yourself. It is advantageous to break down these targets into smaller 'sub targets' that you can track progress during each week. For example keep a weekly track of the savings you have made by visually representing the total amount in a physical scrapbook. Draw out a proper graph and make the X and Y axis your targets – say saving an extra £2000 during the year by the money you are saving from your new budget. This way you never lose site of the overall ambition but you get the satisfaction of being able to update your progress on a weekly basis. Seeing a visual improvement like this ensures you stay motivated and orientated about why you are making the sacrifices to your daily lifestyle. Your brain will respond more positively to the visual display of a well designed graph compared to the sterile numbers displayed in the balance of your savings account.
Ensure the maximum results for your hard work.
One of the most important aspects of a good money strategy is often the most neglected too. You have made the sacrifices and worked hard to hold on to your cash so be sure to put the same effort into finding the best possible place for your savings to do work for you. This could be a long term high interest long term savings account or it could even be investing the savings into a stable business. There are pros and cons to each option so do the research and make an informed decision about what kind of access you want to your savings and how hard you want the money to work for you.
Published at Feb, 17 '13 , Read 1390 times.
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