When you have taken the first step to deal with your debt and creditors by getting on a debt management programme, you can take further steps to increasing the quality of your life. There are two “secrets” to building a richer life with money to spend – increase your income and control your expenditure.
Part 1 "How to increase your earnings"
Follow the advice below, and do it with discipline.
Pay yourself
Let a small portion of your income go into a savings account, say 5-10%. This is the key to getting you out of trouble and also a chance to start building a good life with income to spare. This is how most wealthy people in the world got wealthy and this is still what wealthy people do to increase their wealth. After 6-12 months, invest your savings wisely. Ask someone who knows about investing money, your bank for instance.
Housing
Check whether you’re entitled to any help with rent, rates or taxes.
Other benefits and allowances
Find out if you’re entitled to any additional benefits such as maternity benefit, income support or other benefits provided by the state or your employer.
Extra work
For most people willing, there is extra employment available. Find 5-10 hours outside your normal working hours and do something that earns you an extra income. Ask friends, people you meet, read the classifieds and go to employment agencies to find something that suits you.
Study grants
Look how to gain study grants. You may be able to study part time to improve your prospects while you work. No more loans!
Sell things of value that you can do without
Sell unwanted items in the local classifieds or on the Internet - many newspapers offer free advertisements.
2. STRICTLY CONTROL YOUR EXPENDITURE
Make a budget and find out where you can cut down on costs.
Electricity
Cut down on the usage of electricity by not leaving appliances on stand-by. Switch off lights when not in use. Lower thermostat on radiators to reduce heating costs.
Shopping and food habits
Supermarkets own brands can often be just as good as the well-known brands but cheaper.
Shop once a week and plan your food. Preparing packed lunches could save around a lot every month. Freeze left over food and re-use.
Cut down on eating out and take-aways
Don’t browse around shops and stores, make a shopping list and stick to it.
To be continued next week...
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