What is your #1 financial struggle? This is the question I asked my audience a few weeks ago, and the answers I received did not surprise me. In fact, this is the same thing that most people tell me when they talk to me about their financial struggles! They usually say, "Janee, If I only made more money, then I would be able too…..
Does this sound like you? I know that in your mind, you just admitted who that person is. That person is you! And the reason I know it is you because I was that person until I started to understand that my financial situation was not about how much I could make, it was about how much I could manage.
This next statement may bust your bubble a little bit, but I have to tell you. If you genuinely believe you need more money to do what you want to do and if you know that we serve a God that will supply all of our needs. Don’t you think you would already have the “More” that you need if you REALLY needed it? Think about it…..
So, If you are saying your reason for needing more money is because you don’t earn enough, keep reading because below I have four steps to help you find extra money in your finances without having to get a second job.
1. Take Inventory of your spending.
What have you been spending your money on? This is the first question I ask my clients when we start working together. Interestingly enough, they don’t remember because the swiping devil has attacked them. Swiping, without thinking, puts your money in autopilot and poof. It is GONE!
So here is task #1: Print out the last three months of your bank statements and credit card statements. Highlight the top three categories in which you mostly spend.
Is it shopping, eating out, amazon, subscriptions…..where is the EXTRA going?
2. Identify your “needs” vs. “wants”.
But I work hard to have these things, Janee? I know sis, but you work even harder, working two jobs to pay for these things. So let’s dig a little deeper. Once you have your list highlighted into three categories, let's go more in-depth. Start by placing the number one next to the item you feel is a “need” and the number two by the thing you think is a “want”.
Before you do this, let me explain the difference between a need and a want. A "want" is something that brings you personal pleasure but does not add any value to your financial situation. A “need” is something that is required for you to live a sustainable life.
Now that you have highlighted each area, identify if they are really needs or wants.
3. Cut back on your wants
Now, this is the easy part. Magazine subscriptions, bi-weekly movie trips, frequent nails trips, going out to eat every day, and the list goes on…let…it….go!!! Item list this cut significant cost and instantly free up funds you thought you did not have. These are materialistic things that don’t serve you or your bank account.
4. Cut back on your needs.
You may be thinking, is she is crazy? I need a place to live, and I need a car to get around! Yes, you do! But does your car have to cost as much as your annual income? Does your house have to leave you “house poor” to the point where all of your money goes to rent, and you can barely keep the lights on? No. That is a choice. I get that you want comfort, but is it worth it when you go to bed worried about how you will maintain your lifestyle and keep the lights on?
When I was going through a tough time with my finances, I had to be real about how much I was spending on rent. After all, I was only bringing $10 an hour, rent took up almost 45% of my paycheck, and I had over $10,000 in credit card debt. Downsizing my living space was a hard pill to swallow, but it was a strategic move, and that decision helped me put money towards paying off the debt.
The same goes for you. The very thing that you don't want to do is the exact thing that could spring your financial healing journey forward.
If you have done all of the above things and are still struggling to cover it all, then it is time to get extra income!
Until next time,