Monday, October 25, 2010

Budgets work

Budgets work. They are a very effective way to get finances under control. If you’ve been working your budget for a while, you are surely seeing results. Want to speed things up? Maybe you need to speed things up? Sometimes a second (usually temporary, part-time) job can be the means to get out of a tight spot.
They (the tight spots) do show up occasionally. Maybe you need to pay down your debt quickly. Maybe the holidays are coming. Maybe you’d like a little luxury. Maybe something happened and there was not enough money in your emergency fund to cover it? Maybe you want to build up your emergency fund, to avoid just such a scenario. There are reasons to consider taking on some extra work. There are, also, some reasons not to.
Achieving the goals I suggested you set as the purpose for taking control of your finances through budgeting (lowering debt, establishing an emergency fund, and building long-term savings) are aimed at making your present life more pleasant by ransoming it from past spending and providing a secure future. Of course, that requires discipline now, but the object is to make your money work for you, not for you to become a slave to budgeting. In fact, some people who go on a budget find they can actually quit second jobs.
That said, what do you need to do to enhance the quality of your life at this time?
There are a number of aspects to this question. No matter how many I address, I’m sure you will think of others. A major determining factor is going to be need. Realistically, if your monetary outlay (even after you have cut out all the extravagance you can) is greater than your income, you have to do something. Since a goal of budgeting is to eliminate or avoid debt, borrowing money should not be a consideration. This means you have to produce the money you need.
Upon deciding they need more money, many people immediately start writing resumes and filling out applications. Since you want to be proactive—taking control of your money, maybe be you want to view your time as an asset you can budget. You should be in control of your time, too. Do not just head for your local convenience store or grocery hoping to get as many shifts a week as they will give you. Think about your need. How much more money do you really need make a budget that will work for you? Then, consider pay rates. Now, what work is available that will give you what you need and still leave you with time to do the other things life requires of you? Target those possibilities.
Also, as you consider a second job, think about yourself as more than a tool for someone else to use. What abilities and skills do you have that you might turn into cash without having to “punch a clock?” Many people develop their own sources of revenue—some with more financial and personal satisfaction than they ever received from working for someone else.
You have some choice in how you generate new funds.

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