Every individual worker may just be one of these three possible turnouts of employees in terms of handling their monthly finances:
- A worker, thrifty and has multiple income outside his job, who can afford to increase savings monthly. He is one of those who are wise enough to sustain and multiply bank deposits as month goes next. Probably, their better half has a ton of cash or their parents had given them inheritance to start a new family life. Such possible facts are coupled with their dream to increase assets by investing from little to huge business engagements. This is not actually considered luck because many couples who are into this kind of life have alike manner of spending less and saving more. To cite why, admittedly, regardless of how gigantic your start-up money is, if you are too extravagant and engage into gambling and other unlawful vices, you will always end up financially miserable.
- An employee who consumes exactly what he earns. There is neither excess nor dues. Everything is just enough. But the trouble comes when there is an emergency situation demanding bigger amount. Such type of employee who budgets this way has always that mental outlining of where to allocate the proceeds of their cash during pay-day. Everything goes to either electric or water bill, food, fare, rent and so on. There is no more available cash for hanging outs, thus, their family is used to stay home only making fun out of the available appliances at home.
- An employee who runs out of cash even if it’s a pay-day. He actually worries what and how to pay debts he owed in the past months. The tendency is he does not even afford to provide for his and his family’s basic needs. I should warn you if you are one of them because these employees are prone to mental depression caused by so much worrying. Psychologists and other medical practitioners can explain this to you in detail.
Why do many workers heavily run out of cash?
In this most advanced world, budgeting is considered as a new skill. It is a necessity that not only bankers and accountants should know about. It is an implicit requirement among all the heads of the households. To mention are the parents, to be taught later to their children as a value to learn throughout life.
Here are the top reasons why many employees fail to budget their finances.
1. You spend more than what they earn.
This is best represented by a man who has every expensive gadget even if the monthly salary does not match the amount. The tendency is the later drowning part because the calculated expenses will sink in the actual revenues.
2. You loan for no valid reason.
Are you guilty of this? It is difficult to figure out but this is actually happening among many employees — loaning in banks for no reason. “No reason” phrase here means invalid reason of borrowing cash from the bank. There is no plan to purchase a commercial lot or space, an agricultural land or anything that can give something in return. The worst scenario is when the borrowed money is used only to shop at the mall, dine out or realize the #travelgoals.
This case is surely to deduct the net take home pay every month, which will later drown a worker and put him in total disdain.
3. You buy things they do not need.
Being extravagant is often tied up to this spender. When shopping at the mall, they bring a what-to-buy list, but end up buying unlisted items that are actually not needed. These days, online shopping is also very tempting especialy if you see models wearing best outfits at a very affordable prize. Your eyes start to tantalize wanting to buy the items.
4. You do not know what to prioritize.
This is not judgment. If you think you have done everything, you have worked hard and you want a reward, then there is nothing wrong with buying your long-wanted item or travelling to a place you have long-dreamt of.
But if you have a list of needed things for yourself and you choose not to bother yourself buying or spending to it, maybe you lack prioritization skill. This is another factor to consider so that you will not run out of money.
5. You do not invest.
Investment is a savior of a family. When things go wrong such as low job, unexpected expenses and more, your investment can be a hero to troubleshoot your money issue. Imagine if you did not invest, what and where can you find money? Even the popular business tycoons once started with investing their meager income, which later brought them gigantic assets.
6. You easily give money.
You should be recognized for having an emphatic heart from helping a needy friend or a family member. However, try to figure out if things still went well to yourself. I do not say leave your humanitarian activities because that is something to be treasured.
My point is try to analyze whether or not you still have enough left for yourself.
7. You have big family and small salary.
Let me include this one. It is appreciable if a family has many kids. The more, the merrier they say. But the thriving counterpart of this is the challenge to make a small salary enough for a big family. It gives more reasons for the family head to work harder and wiser.