Personal Finance

How to Stop Living from Month to Month

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You know you’re living month to month if you find that you’re always running out of money before your next month salary arrives. If you always have to borrow money from family and friends, take out cash advances, or use your credit cards to cover your expenses until your next payday, then you’re living month to month.

What can you do to help improve the situation of living month to month?

You’re living month to month because either you’re not budgeting or because you don’t make enough money to cover the bills.

Start by creating a budget to help you figure out how to make the most of your salary. Once you make a budget before you actually spend your money, you’ll know ahead of time whether you make enough money to make ends meet. If all your expenses fit within your budget, then your income is enough and the reason you’re living month to month is that you’re spending more money than you can afford to.

Track your spending. If your budget isn’t working, keep track of your spending to figure out where your money is going. Save your receipts. Separate them into categories like gas and food, then add up receipts for each category. This will let you see where you’re spending the most money.

Once you realize where your money is going try to cut back on your spending. This process might require some lifestyle changes. For example, if you’re used to buying a $5 sandwich every morning before work ($100 a month), you may have to start making it at home ($20-$25 a month), or going without completely. You might have to resort to the basic cable package, because if you’re living month to month, you really can’t afford it.

Increasing your income isn’t always a possible, but there are options to consider such as working part-time or making money on the side making things to sell. Be careful because making more money won’t always solve your problem unless you decide to Change your attitude about money.

People who live month to month often don’t make the wise spending decisions. They find themselves spending more money on things they want than on things you need. Though matter the circumstances, setting up a budget and tracking your spending will certainly help you get back on track.


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