If you find yourself in a financial rut, you need to do something differently. As the saying goes, if you do what you have always done, you will get what you have always gotten. If the budgeting and financial walls seem to close around you, take heart. There are ways to break the rut. Following are six tips to consider when trying to shake your financial habits, which may seem to be firmly entrenched.
Eliminate an Expense Each Month
Most times, financial ruts arise because of an over reliance on the status quo. In these cases, you need to reframe your budget and eliminate a monthly recurring expense. This expense should be an unnecessary expense that is purely discretionary. For instance, break your rut and do not purchase that fancy coffee every morning. A treat like this can easily set you back by $100 or more per month, depending on how often you indulge.Â
Many expenses can be eliminated by differentiating between wants and needs. A good way to ascertain this is by asking yourself whether or not you will die if you do not purchase it. When you distinguish between a want and a need, it may become easier to trim your budget.
Go on a Cash Detox
For a prolonged period (possibly 2–4 months), do not use your credit cards and only use cash from Sunshine Loans. Credit cards can have a way of persuading you to spend more money. For instance, purchasing an item and paying $100 cash for it is more difficult than putting the item on credit. With credit, no cash changes hands, and it is like you did not really spend $100.
Figure out Your Problem Areas
It makes sense that one cannot solve the problem areas unless he/she knows and targets these problem areas. Keep in mind the things you have done to remain in the rut and try something different. Figuring out your problem areas can be trial and error, or you may have a good idea of these problem areas already. If you’re stuck in a rut, it may be a result of you been trying the same inadequate solutions.
Focus on Making More Money
Although cutting back on unnecessary expenses can help get you out of a financial rut, cuts can be made in only so many categories. Then, you just have a budget that will allow necessities only. This budget can discourage one from continuing on the budget because there is no wiggle room to deviate from the budget. However, you do not have to just focus on cutting expenses.Â
You can concentrate on making more money. This means taking side jobs and earning a little extra money. A small infusion of cash can work wonders for a budget if all other budget items stay the same.
Find a Support System
Changing your habits may not be as difficult if you have friends that have these better habits. This situation can be like stopping smoking by yourself. If you continue to operate within your mind’s “closed system”, progress will be harder than necessary. However, if you can find a buddy that wants the same things or has accomplished these goals, your chances to succeed will increase.
Change Your Routine and Habits
These minor changes to improve your budget can only work over the long run if they cause a change in your habits and routine. It helps to research habits that broke people have, so you can avoid these habits and do something different. If you change your routines and make different choices over an extended period, your habits will follow suit.
