Trade The Journey

Trade The Journey

Cashflow crunch, We all know those days!

The good times don’t last and neither do the bad times, but those bad times seem to last a lot longer than the good times. However, managing your cash flow during the bad times can affect the longevity of your good times.

I like many have experienced times when the costs and expenses seem to come at once. It feels as if you are slowly sinking and the emergency kit you prepared just isn’t enough to last. Learning how to manage your cash flow when you need every dollar to work its magic can be a lifelong lesson.

This could be a time of borrowing and increasing your debt level to maintain the good times but the debt always comes due. The left over bad times can significantly affect the good times which may come in the form of a raise you’ve been waiting for. Imagine receiving the raise you’ve been waiting for and the debt payments eat up a portion of it.

or

This could be a time of tightening your belt and preparing for the future. One challenge you could undertake is seeing if you could manage your cash flow during the bad times without dipping into your savings. This challenge seems insurmountable in the beginning and mostly likely you will make mistakes. Hopefully the mistakes are covered by your savings account. If not, its a learning lesson for the future about being prepared.

What you’ll find as you keeping trying to succeed in the challenge is that your money management skills will improve. These skills will begin to become apart of you. You’ll begin to see what isĀ  truly a need and truly a want. Here are some extra tips to help you along your path.

  • Before you spend a dollar of your paycheck. Anticipate how much you will receive based on the hours you worked. Layout the expenses you expect to arise during the pay period with the most important expense paid for first. Anticipate how much you will have left over.
  • Almost all of the expenses you make after you take care of the necessities above is a want, so decide how much of these “want” purchases you can make.
  • You may not be able to save as much as you normally do. However, you can still setup the automatic transfer to take place for small amounts. This way you will always be savingĀ  regardless of your economic situation.
  • Good times are coming ahead. When the good times come hopefully the skills you mastered during the lean times will allow you to save even more during the good times.

Developing layers of financial protection can be uncomfortable in the beginning but I can guarantee you it provides some peace of mind in the end. Anything can happen but being prepared can help.

 

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