One of the first pieces of advice everyone offers when you’re seeking relief from money problems is to adjust your spending to live more solidly within your means.
And, this is good counsel.
However, there comes a point at which cutting back gains you no new ground. You’ve done everything you could to live more affordably and affording to live is still escaping you. That’s one of the signs you need to make more money.
Here are some others.
Credit Cards are a Routine Aspect of Your Spending
Credit cards are really intended to give you some leverage in emergency situations. They should never be looked upon as currency, or as an aspect of your spending power because they steal from your future.
Think about it.
When you buy something today with the promise you’ll pay tomorrow, you’re spending money you have yet to earn. Then, when you do earn it, it’s already spent and you have to borrow from your future again to make up the difference.
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See how easy it is to get trapped on that treadmill?
You Dread an Emergency
According to CNBC, a good 40 percent of Americans would be at a loss to handle a $400 emergency with cash. Reporting on a Federal Reserve survey, the network says far too many people are living paycheck-to-paycheck, counting on every dollar they earn to service their day-to-day needs.
Thus, if they encountered an unexpected expense, they’d have to go farther into debt to deal with it, or sell some precious item they currently own. It’s time to look for ways to harvest more cash If you’re among that 40 percent.
You Have to Decide Which Bills to Pay
Again, if you’ve gone over your budget with a fine-toothed comb, cutting back in every possible way, and you still lack the funds to pay something on each of your bills every month, you have more bills than money. It’s past time to do something about it.
However, there is one last thing you can try — if your credit history and score are still favorable. A credit card consolidation will combine multiple debts into one, with a lower overall payment and at a lower overall interest rate.
This could gain you a bit of breathing room, but you’ll still need to figure out a way to increase your income in order to get ahead.
Progress Toward Your Financial Goals is Elusive
“Every time I get a little bit ahead, something happens to set me back.”
Your income needs a significant boost if you’ve uttered that phrase, or had that thought at any point within the past year or so. Even if you have your bills in hand, your money is still slipping away from you if you’re aren’t making any headway toward your financial goals.
Generating more income and earmarking it for your long term goals rather than short-term spending will alleviate this situation.
You Have no Disposable Income After Paying Your Bills
Your income is most likely the problem if you’re broke and need to use a credit card to get through the rest of the month after paying all of your bills.
Yes, people do have bad months every now and then. The car breaks down, one of the kids fractures their wrist, or the hot water heater goes on the fritz.
However, your cash flow needs to grow if none of those things are happening and you’re still out of cash by the fifth of the month.
Now before you despair, please know these signs you need to make more money are in no way a reflection of your quality as a human being. It simply means you still have room to grow and make life better for yourself. There are lots of ways to make extra money. You just need to dust off your creativity and put in a bit of time.