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Why You Need To Be One Pay Cheque Ahead Of The Game

Have you ever been in a situation where you had an unexpected money emergency, and, because you are living so close to the bread line, you just didn’t have the cash on hand to deal with the situation? So what did you do? You dipped into your credit card didn’t you? Or you decided to finally take out that personal loan, a bunch of creditors have been offering you. Here are ways to make sure you have a financial cushion when life throws you a curve ball:

Get One Pay Cheque Ahead
You need to be at least one pay cheque ahead of the game. If you don’t have the equivalent of one month’s salary saved, then when something unexpected comes up, you are stuck. So how do you get one pay cheque ahead?

You need to save. That’s the bottom line.
And the only way to save is to make sure you know what you are spending your money on, so you can look to sharpen your budget. If you don’t have a budget and you are spending your money “willy-nilly” then how can you possibly look to improve?

You can’t!
If you have looked at your budget a million times and you still truthfully can’t find a way to save any money, then unfortunately your situation is a little more serious than expected.

You need to earn more money
Yeah, we know that is easier said than done, but if you don’t, the increased cost of living in South Africa is eventually going to catch up with you.

How do you go about earning more money?
First off, you could be looking for better paying jobs or looking to take on a second job.

Have you asked yourself any of these questions?
  • Is there any additional work I could be doing to earn more money?
  • Have I spoken to my employer about picking up some over-time?
  • Is there any additional training or self-improvement I can be doing to better my chances of getting a better paying job?
Failing to find ways to cut spending, in your budget, means you are only left with one choice - to earn more money. It’s important you start getting ahead in terms of your savings otherwise getting into debt is the only way to keep your head above water and unfortunately once you are down that slippery slope it’s really difficult to get out of it.

#Getonemonthahead
That should be the motto for this year. Put a stake in the ground. By December this year, you are going to go into January with at least the equivalent of one month’s pay cheque - in your bank account, earning interest.

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The iHound