people, balancing a budget can be quite difficult. It’s not because they aren’t
good at Math. It’s just that life can be unpredictable. Things happen that can
throw a curve ball to your budget that managing it feels like a balancing act.
If you have
kids, their needs increase as they get older. Tuition fees become more
the family might get sick. Hospitalization, doctor’s fees, and medicines can be
breaks down. Car repairs and maintenance are not standard items in your monthly
are the economics of day-to-day life:
- Petrol prices go up
- Cost of commodities go up
- Traffic gets worse, you’re stuck in the main freeway longer than usual
boss gives you a nice, fat pay raise or your business is in a boom cycle,
chances are your expenses are higher than your income.
people who can no longer balance their budget, debt becomes the only solution.
apply for ready credit facilities from their bank or secure a quick cash loan
from a lender.
use the money to pay off shortfalls in the monthly budget. Why go into debt to
make ends meet?
minds, this is just a temporary situation. Everything will be back to normal
after a few months.
can get that pay raise that is long overdue.”
sales will pick up in a few months.”
money based on a hunch or speculation that “things will get better”
There is a
term lenders and banks like to use:
money or get into debt in order to bridge your monthly shortfalls.
nothing is ever written in stone.
raise might never happen.
boom might end up a bust.
can collapse and cost you more money than what you actually owe.
use debt to make ends meet. The risk you take is much greater than the expected
rewards. Rather than get into debt, you can do the following:
- Cut out unnecessary expenses. You’ll be surprised
at how much money you can save by not eating out and spending for a cup of
coffee at your favourite coffee shop.
- Manage your utility bills. Close all lights in
rooms that are occupied. Ration your usage of water. Sleep earlier.
- Find a second job, a side line, or take freelance
projects for extra income.
- Come up with a garage sale and make money from
stuff you don’t need.
- Be prepared to sacrifice. This might mean
sacrificing the annual vacation or cancelling subscriptions to cable TV and
- Be ready for a lifestyle change. Are you still
single? Well, you may have to stay single longer. Cut out date nights and
social gatherings. Are you married? You and the spouse may have to spend more
time indoors. Family? Tell the kids that family activities will be cut down a
Debt is a short cut that offers no long-term solution. Avoid
debt at all costs and just focus on making your current situation better even
if it means implementing temporary cutbacks.