When you compile your list of outgoing expenses, you may come up
short. You aren’t alone. In fact, a
recent survey
of Americans showed that 53% of respondents live
paycheck-to-paycheck, meaning they have no money left after all
of their expenses are paid. On top of that, more than 1 in 10
can’t even go one week without being paid because they have zero
savings and no safety net.
A budget deficit occurs when expenses outpace income. To resolve
a deficit there are two options:
earn more
or spend less. Earning more can mean monetizing your hobbies,
picking up a few shifts a week as a rideshare driver, walking
dogs on the weekend or
. It could mean asking your boss for a raise or having friends
and family return the loans you’ve extended to them.
Cutting your expenses can look like skipping happy hour, packing
a lunch, or dropping that gym membership you never use. It can
also look like
or reducing your utility bills by changing your habits.
When you make these adjustments to your spending and earning,
what you’re essentially doing is aligning your budget with your
values. If travel is a goal and a priority for you, maybe
highlighting that your take-out orders are eating up the funds
you could be allocating for airfare will compel you to change
your dinner habits.
Action items:
- • Find what’s causing the deficit
- • Identify small changes that have a big impact
- • Explore your banking options