Everywhere you turn these days people are talking about how they are struggling financially. The recession has hit everyone but those on a lower income will feel it more. Young people are also struggling more than ever with lots of singles having no choice but to move back home. If you’re lucky enough and your parents are fine with it, the best thing would be to move back home. These days the average age of moving out of home is late 20’s early 30’s. So if you are in that age range, don’t feel bad about having to move back home, you are not alone. You possibly moved out too soon in the first place.
There are ways you can budget to ensure you have enough money to last the month. The last thing you want to do is go down the pay day loan route. If you are struggling to get through the month, make some sensible changes rather than borrowing off a lawn shark. This will not help you out in the long term and it could easily lead to far more debt. So what should you do?
First up you need to look at all your outgoings. List your monthly rent, council tax, gas, electricity, water, petrol, food and any other expenses. When it comes to your food bill, it might be worth keeping every receipt for a month and not forgetting any meals or snacks you buy while you’re out. You might be surprised at how much you spend eating out especially when it comes to lunch time while at work. If you make the effort and take a packed lunch with you to work this will be a serious saving at the end of the month. You just have to be more organised and remember to make your lunch.
The worst thing anyone can do when they are in debt is to get more loans to pay of these debts. Yes it makes sense to put all your debts together and just have one monthly outgoing payment, but borrowing more is definitely not the way to go. There was a time when there was no such thing as credit or loans. People would save for items they desired. If you didn’t have the money you didn’t buy it, simple! I am the same today. I do not buy ANYTHING on hire purchase. It just doesn’t make any sense to me. Why buy something over a period of time and pay far MORE for it? That is just pure madness to me. We should and CAN all save a little each week and keep saving until we have enough, then and only then can you AFFORD it. Now you may be saying you haven’t got any spare money to save. Well think again. Do you smoke? Then quit! Do you drink? Then quit! Do you shop for the latest fashions each month? Then stop! Do you take your car to the local shops when really you could walk? Then walk! I could go on but I think I am making my point.
The best bit of advice for someone in a difficult financial situation is to look at what they are really spending their money on and cut back. This really isn’t as hard as it sounds. We all WASTE money and there is always a way to cut back. Ask anyone who was around when World War II was happening. That was what hardship was. There were rations, food wasn’t available and times were REALLY tough. Nothing compares to those days, so even if you’re struggling now, it is nothing to what our ancestors went through.
So if you’re planning on moving back home, be grateful that you can do just that. Make the most of your time at home and save for your future. Remember your parents will have more expenses with you back at home so make sure you pay your fair share. They too are feeling the pinch and will be also looking at ways to keep costs down.