3 Ways To Cope With Budget Gaps

3 Ways To Cope With Budget Gaps Image Source

We’ve all had those moments when we look at our budget and our monthly outgoings, and realize there’s a gap that we’re going to need to fill. Whether you’ve spent more than originally budgeted for on general household necessities, or had to find the funds to cover an unexpected expense, the end result is the same: you need more money than you currently have available to you. For some people, this issue isn’t a one-off; it’s a chronic, monthly issue that needs to be addressed.

Whether it’s a one-off or a single issue, however, the simple fact remains that something needs to be done about the budget gap. many people may find themselves tempted by payday loans or borrowing cash from family. However, these aren’t always the best ideas to turn to first and foremost— they may be useful in the future if all other options disappoint, but here’s a few alternatives you might want to consider first…

#1 – Asking for an advance on your wages

There’s no guarantee this will work, of course, but it’s worth a try. If you have a good reputation at your company, then you may be allowed to take an advance that can help paper over the financial cracks. However, it’s worth remembering this is not a solution for a long-term lack of funds; it’s a short-term fix for short-term, temporary problems, so be aware of this before you accept an advance.

For longer term financial issues, it may be worth looking at a side hustle or potentially moving to a new job that is better paid. If you continually find yourself short at the end of a month, short-term fixes are not the answer; you’re going to need to think bigger to improve your finances on a long-term basis.

#2 – Claim what you might be owed

Most of us have at least some money outstanding to us, whether it’s a loan a friend never paid back, a financial payout from a car accident that we didn’t pursue, or a refund from a company that has never arrived. Spend a little time going back through your memory to see if you have any such outstanding amounts.

Obviously, recouping some of these funds may take longer than others; there’s no doubt that hiring a car accident attorney to help pursue compensation can take a long time, and your friends may need time to raise the funds to pay you back. However, both options can help ease your financial situation in the future, so they’re well worth doing if you suffer from chronic budget gaps. If you’re in need of cash a little quicker, then pursue the refund route— it’s usually the quickest, and can really help to cover temporary financial glitches.

#3 – Cut one outgoing from your budget for every month you have a gap

Every time you have a budget gap, cut one aspect from your budget. The most obvious area to cull is the entertainment section as, while it’s nice to have entertainment funds, it’s not essential. Cutting a single streaming subscription service, for example, could save you over $100 per year, so if you have continual budget gaps, this could make a real difference to your long-term financial management, and ensure that the money you have available is able to go further in future.

In conclusion

Whether your budget gaps are long or short term, the options above should help to address the issue once and for all. Good luck!

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