Is it possible to manage financial instability? Yes. When you are able to control your lifestyle, you can fight financial instability. Here are six ways to do that.
1. Keep track of your spending. Keep a list of your spending. Categorize them into regular and non-regular, and according to priority. Create a schedule and determine when to pay these expenses and your source of funds.
2. Discipline your spending by staying within the bounds of your budget. One of the most common causes of financial instability is spending more than the earnings.
3. Find ways to earn passive income. Passive income is a great way to increase earnings. You can rent out some stuff. You can invest in stocks or bonds
4. If sources of passive income are not available, you can try some ways to earn extra income. Offer services to your neighbors. You can try tutoring your neighbors’ kids or mowing their lawn. If offering services is not appealing, you can try selling your old stuff in your garage. Old stuff of great value may be sold on Craigslist.
5. Change your lifestyle in a significant way. This is the most difficult step but one small step is a great leap out of financial instability. Trim down on your recreation. Avoid eating out too much. Instead of going to movie houses, you can rent DVDs and watch at home. Join a carpool to save on fuel.
6. Manage your debts well. If possible, avoid using more than one credit card. Be prompt in paying your bills. Resort to borrowing only when necessary. Do not use cash advances for every day expenses.