Maybe you get paid monthly, maybe you get paid fortnightly. Either way, we’ve likely all been in that situation where we have enough money in theory… but we spend it a little too enthusiastically and a little too early, and we end up short for a few days.
If you dream of going to your parent’s place for dinner because you love some good home cooking, and not because you’re broke until Wednesday and need to eat, read on for some super quick tips and tricks on how to manage your cash flow.
Figure out where your money is going
Managing your cash flow is all about balancing the money going in and out. There is a bunch of methods you can use, but at the end of the day, the most important one is understanding it.
If you only get paid once per calendar month, but you have to pay your rent every week, you need to think about planning in advance for those months that last longer than exactly four weeks. (Literally every month other than February!)
The same goes for any other regular expenses.
If you’re not up for creating a whole new system for yourself (and let’s be real, there’s no need to reinvent the wheel), there are some really good budgeting styles out there. They all have some kind of appeal, but at the end of the day, we think the best budget is the one you stick to.
You could, for instance, try out the 50/30/20 method (based on dividing your expenses into needs, wants, and savings), or the zero sum budget (based on allocating every dollar you have somewhere).
Use a spreadsheet, a notebook, or even a napkin. Just make sure you keep some kind of record of where your money is going.
Cut costs
This one might seem like a no-brainer… and it kind of is. If you’re spending more than you have, you probably need to spend less. Using the 50/30/20 method could help you cut down on your non-essential expenses.
Need some ideas on how to do this? We’ve got heaps. Check out this guide to curbing your spending habits and these three hacks to avoid lifestyle creep.
Okay… but what else?
No matter how hard you work or how carefully you plan, sometimes you still end up in a tight spot cash-wise. So, what else could you do?
- Sell some stuff. Sell some of that extra stuff you’ve got sitting in the back of your wardrobe. Maybe that bike you never ride? Or those Xbox games you no longer play.
- Call in your debts. You were kind enough to lend out some money when you had it. There’s no shame in calling in those debts! Text your mates a polite reminder that they owe you and the time is now.
- Price yourself right. Now, this one might not be for everyone, but it might be worth your while to check how much you’re being paid. If you’re self-employed, it might be time to up your rates. If not, why not do a quick search on market rates. If you’re in a position to negotiate a raise, sit down with your boss and outline all the great work you’ve been doing. It can’t hurt to ask.
