Monday, 8 May 2017

Do You Have Little to Show for Your Hard Work?

By Miriam Caldwell
Updated December 05, 2016
One of the most frustrating situations is where you are continually working hard, but you still cannot seem to get ahead financially. It can be disheartening to be working toward a goal and not be making any progress on achieving. You may need to change the way you are handling or doing things in order to begin to make real progress. Here are a few situations and the changes you need to make before you begin to make progress.

Operating without a Plan
It is possible to be broke even when you are making a good salary. This can happen when you do not have a budget. The money is spent on things without you realizing that you have spent it. It can be difficult to see progress on your goal, because you are not setting aside the money to cover the goal. You are also not disciplining yourself when it comes to spending or other issues.

The solution is to set up a solid budget and a five-year financial plan. This helps you to control your daily spending and prioritize your goals for the extra money that you have in your budget when you control your spending. It sounds simple, but sticking to a budget is not always easy, you may want to use budgeting hacks like finding a budget system that works for you or switching to cash for specific categories. Once you start budgeting and really stick with it for a few months, you should see a real change in your situation.

This can help you if find yourself trying to get by with no savings.

You Don’t Make Enough
The simple truth is that if you do not make enough money, you will not get ahead. Each month you will be playing catch up and trying to stretch your money even more. If you do not make enough, you likely do not have a spending or budgeting problem.

It is an income issue, and you need to work to fix it. This is a case where you need to make sure you are working smarter, not just harder. You can work hard at minimum wage for sixty hours a week and barely scrape by, or you can look into a career field that allows you to earn more. Even if you are temporarily taking on a second job, you need to make sure that you can earn more than minimum wage at it.

If you have no training and no college degree going back to school can change your life and open up more opportunities. However, your college choice matters. You need to steer clear of schools that offer quick certifications at cost of thousands of dollars. A local community college or university will be more affordable and give you better results. Talk to people in the field you are considering to find out where they completed their training and if they accrued a lot of debt to get it.

Too Much Debt
You may be making a decent salary, and budgeting your money, but you are stuck with so much in debt payments each month that you cannot function or get ahead. This can be a frustrating situation where you feel like nothing you can do will change the situation. A budget is a must, and you need to see if you can tighten it up even more.

You may want to look into consolidating your debt, but only if you are committed to never touching your credit cards again. Selling things, cutting back on expenses and finding a second job may help you turn your situation around. It can be difficult, and it can take a lot of time and sacrifice, but it is possible to pay off your debt if you remain focused and committed. If you need additional help, a reputable credit counseling service may be able to help you set up a payment plan and negotiate lower rates.

A Combination of All Three
 You may also be in a situation where you do not have a budget, you have too much debt, and you simply do not make enough money. You can turn this situation around. Start with your budget, set up a debt payment plan and find ways to increase your income. It can be scary to write everything down and see exactly where you are, but it can make a big difference in changing your situation.

You can make the changes you need to in your life, but you need a solid plan and clear goals to do it.

source - thebalance