Twenty Somethin’ and Black Contributor Post
Last year, I struggle with managing my money to pay my bills on time. I had three major bills: my phone bill, my Old Navy bill, and CareCredit. Even on payday, I still felt broke. I had to take a step completely back from my whole financial situation and understand what I needed to change. I was overspending on things that I never should have been getting but I was mainly not setting a limit.
I’m not completely out of the red with my financial state but it’s improving. I was only getting my nails done when my paycheck allowed it. I was only investing in new hair products when my paycheck allowed it. I only bought a new outfit when it was necessary and when my paycheck allowed it. But overall, I paid off my late fees of being so behind that now I can finally not be so stressed. My credit cards are closed (which is great especially that Old Navy card, lol). The plan is to be able to debt free in a year, with me taking my car payment away from my mom (just being real), and able to spend money on myself occasionally with no concern.
Here are some tips that have worked for me over these last couple of months, and allowed me to readjust my financial situation:
1. Stop giving in to your credit cards. Mines messed up my credit, and now I’m working on building that backup. It puts you in more debt.
2. Start saving! So I advise saving about $5-$20 from each paycheck, put it into an account that you don’t have complete access too. This will allow you to see small amounts become bigger amounts in no time, and it could potentially help you in hard times when you are low on funds.
3. Stay on top of your spending. If you ever question should I spend this? Then don’t. You already know before spending that your funds are low, so don’t push your limits. Whatever you want at that time, can wait until you have enough funds. (Tip: If you can’t pay all your bills off that one paycheck, and have extra over then you can’t spend on unnecessary things).
4. Meal Prep. It cuts back tremendously on spending extra funds. Get ingredients for about two-three meals to last you for a week, including some snacks and this will avoid not spending money on outside food. It just helps accumulate more money each check for something else that you may need.
5. Break your bills up into increments. This is just a form that you can use to expand your money but it was definitely something that worked for me. I would take one check every week or two weeks and split my total amount of each bill down the middle and pay that. When the next check comes, I’ll do the same and therefore it doesn’t feel as if I’m breaking the bank. I’m able to live a little bit more comfortably.
Of course, it’s way more tips out there but I just wanted to hand down five of the best that worked for me. Once you have really set these steps into play, you will begin to feel like you are not living paycheck to paycheck and much better about your financial situation.