7 Steps to Financial Success
24Jul

How to Get Out of Survival Mode – 7 Steps to Financial Success

Living in survival mode is a situation where you are financially living day to day. You may be worried about how you’ll make it through till payday. Here are seven steps that can get you out of survival mode:

Identify the problems

What is it that has put you into this situation; do you have a lot of debt? are you not making enough money? or do you have some spending issues? You may have one or all of these and are finding it hard to break the cycle. Writing down your income and expenses will help you know where the problem is coming from. You’ll figure out whether you are earning enough to finance your lifestyle or are spending on items which aren’t necessary. Analysing your bank statements will help you scrutinize and take corrective measures.

Use a budget

Make a budget and stick to it. You will need to be very disciplined, avoid spending outside your budget and ensure that you have left something to save.

Increase your income

You may have found that you are earning less than you would like. The solution to this problem is to increase your income. A short-term solution is to start a small job on the side, which can earn you some extra income or even switch jobs to one where you can make more money. This may mean earning more qualifications and increasing your earning power. You’ll see what works for you, don’t just jump into something, ensure that the decision you make is viable.

Reduce your expenses

You will need to cut your spending, especially on recurring non-essential items.

Cut eating out

Eating out may be taking a good chunk of your earnings. If you cut it out, you’ll find yourself having more money at the end of the month and you won’t have to resort to credit cards. You’ll also have some money left over to save.

Look for ways to save

There are several ways through which you can save, for example shopping in bulk, buying in particular stores or at given periods, especially when there are special offers and discounts. You can shop online instead of buying from a brick and mortar shop, where the prices may be higher. You can also buy your groceries from farmers markets instead of a grocery store.

Keep some money for emergencies

Set aside an emergency fund, this will ensure that you have some back up money if you run into unexpected, emergency expenses.

Disclaimer: The above information is general in nature and not intended to be advice. You should consider seeking professional advice before following any suggestions in this blog/website.