How to increase your salary by removing expenses
Many people tend to live beyond what their income amounts to, and thus end up living off credit to get by each month. Finding a way to increase your salary will help greatly improve your monthly income and ability to manage expenses better.
How can you increase your income every month?
Put in business terms, you either have to get a higher salary (revenue) or cut costs and give yourself a higher nett salary (profit). The ability to increase your current salary starts by understanding how you could re-organise your monthly expenses. Every household is different and expenses will vary one from the other ranging from utility bills, monthly groceries, rent, mortgage, kid’s tuition to extracurricular classes, hobbies, leisure and more.
Here are some tips on how to change your spending habits
We often find ourselves in a situation where we over indulge or simply over spend on things we may not even need. So how do you increase your salary and cut the unnecessary spending habits?
Take only the exact amount of cash that you’ll need to purchase your items to avoid spending extra simply because the extra cash is in your wallet. By leaving your credit card and or debit cards at home, this will greatly increase your chances of not spending more than you originally planned to. Very few people will be willing to drive all the way home and returning to the shops simply to purchase those extra items, guaranteeing that you save on spending your salary. Make up a shopping list before heading out because in this way you won’t purchase other things excluded from the list, it will greatly reduce those odds. If you can’t discipline yourself to stick to the list, then you can always ask someone to run the errand for you.
- Set financial goals
If you plan to save up for a particular item to eliminate having to purchase it on credit, or a holiday for that matter, then setting some financial goals will help you cut back on unnecessary expenses. Whenever you feel the urge to buy something you don’t really need or spend more money elsewhere, try and consider and remember why you’re saving up in the first place. Think about that gorgeous holiday destination just waiting to happen once you’ve accrued the finances to do so. Some experts recommend visual stimulation so a picture of that property, holiday resort, or motor vehicle, in the form of a print out of what you’re aiming to achieve is highly motivational.
Lifestyle inflation is one of the biggest reasons people end up spending more, because often times, people tend to live according to what they’re earning. For this reason salary increases will equate to more spending because you’re able to do so. By living in the same parameters of expenses as you did before your salary increase, will result in better chances to save and increase your income in this manner.
Sometimes it’s hard to stick to your guns, but if you informed your family and friends about your plans to save, they can help motivate you and keep you on the right path. A chance to increase your salary won’t happen overnight, so take it slow, one step at a time and you’ll get there.