Sometimes, whether due to a health emergency, an urgent car repair or everyday expenses, you need to find extra money in your budget. While it can be hard to change your financial habits, there are some steps you can take to make the most of the money you do have and potentially add more funds to your coffers.
If you need extra money right away, a personal loan from a bank, credit union or online lender offers fixed terms and predictable monthly payments. Knowing what you owe each month can help you plan for repayment without stretching your budget too far.
Here are some tips to consider if you’re looking to make your budget work a little harder for you.
Track your spending
The first step to finding extra money in your budget is to have a clear sense of what money you have coming in and where it’s going. Write down all your expenses over the past few months — utilities, car payments, rent, groceries, subscriptions and commuting costs are a few common ones. Don’t forget to include the money you put into your savings and investments. Once you have everything recorded in one place, compare your total to your monthly income.
As you continue to track your spending, it could be helpful to use an app on your smartphone, or you could keep a spreadsheet of your daily expenses and review them at the end of each month. Look for spending patterns, which can reveal habits that you may be able to shift. For example, if you find yourself buying a $5 coffee every morning, you could save $150 over the course of a month if you made your coffee at home.
Once you have a better understanding of your spending, you may see opportunities where you could save more or redirect your money to better support your financial goals.
Retool your budget
One benefit of examining your financial habits and spending patterns is that you may find ways to adjust your budget to better serve your needs, or you may try a new budgeting method altogether. Here are a few common ways to approach budgeting:
· The 50-30-20 method: 50% of your income goes toward needs (like utilities and groceries), 30% toward wants (like dining out and entertainment) and 20% toward your savings and debt repayment.
· Zero-based budget: Before you spend any money for the month, assign all your income a role with a dollar amount until you get to zero, including monthly credit card payments and your savings.
· Envelope method: At the beginning of the month, decide how much you’ll spend on different categories, like commuting and dinners with friends. Put that amount of cash into envelopes for each category. You’re only allowed to spend what’s in the envelope until the following month.
You may also want to take this time to set up an emergency fund. In addition to your savings, an emergency fund could help if you ever need to cover an urgent cost in the future. Make saving even easier by setting up automatic deposits from your paycheck to your emergency fund.
Take on extra work
While it’s not always the easiest solution, picking up part-time or hourly work every week could help you pad your budget and afford unexpected costs. If you have specific skills, such as catering events, web design or playing a musical instrument, see if there are opportunities to offer those services. Otherwise, gig work, such as walking dogs in your neighborhood or delivering food or groceries, could provide some additional income with a lower time commitment.
Look for shopping deals
If you’re looking to trim your spending, consider changing how you shop for goods. Plan out your meals ahead of time so that you don’t overspend on groceries. Grocery stores often have in-store deals that you can find on the store’s website or app. Buying in bulk might also make sense, especially for pantry staples or frozen goods, if you have the space to store them.
You could also look for alternative shopping solutions, such as secondhand, thrift or consignment stores that sell clothing, books, art, furniture and other items. Etsy, ThredUp, Poshmark, eBay and Craigslist have pre-owned clothes and household items for sale.
Ask for support
If you’re struggling to get your budget to work for you, you might consider looking for personalized advice from a financial counselor or coach. A professional could help you create a detailed plan for retooling your budget and offer solutions to help you do more with your money. Call 211 to see if there are any free or low-cost financial services in your local area, or look for non-profits that may offer financial counseling.
Don’t give up
While it may seem hard to find the money you need at first glance, taking time to dig into your finances may reveal new ways to make the most of your budget. Track your spending, try new budgeting methods, take on extra work, look for deals and ask for support.
Once you’re able to afford what you need, keep taking small steps toward improving your finances and creating a more secure and stable future for yourself.
Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of redandwhitemagz.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.
