By Melody C. Kerr, Founder, Centsible Finance
Last time in Making Cents, I listed a few things we could examine in our lives to cut back. If you’ve been reading the past few letters, you know cutting back will help you get to the point where you can either start saving for a rainy day or start chipping away at debt. (I recommend saving up $1,000 before you start paying down your debt. I’ll get to that next time.) So, we talked about ways to cut back on how much we spend on food (eating out), shopping, our utilities, and other essentials:
- We can save by preparing our meals ourselves, instead of dining out. If you go out during your lunch break from work and spend $8, that adds up to over $2,000 every year.
(Even if you’re not big on dining out, maybe switching where you shop could save you
some money.)
- We can save by shopping less for the things we want and shopping around more for the things we need–at better prices.
For example, car insurance–or any other insurance, for that matter–shouldn’t be a
set-it-and-forget-it necessity we pay for. Before you renew your policy, shop around. These days, new customers get the incentives–and the discounts–for joining.
And just a 15% savings on car insurance that costs you $1,000 every year means
$150 saved.
- We can even save by setting the AC to a higher temperature. For instance, you can push your thermostat up to 82° when you leave the house for a few hours, or plug your electronics into a surge protector with a timer, or wash larger loads of clothes with cold water.
But if you don’t think ideas like these are enough, don’t be discouraged. Start by looking at the things that are right under your nose.
Remember, the things we can cut back on are all around us. It might require us to make some changes and think a little harder and more creatively, but they’re there. But cutting back also includes the items lying around that we don’t really use anymore. Look around you… Think about selling these things. Do you have old tools you don’t need? Do you have any clothes in your closet that you forgot you even had? (Guilty on that one!) What about old, small appliances that are taking up space on your kitchen countertop? Or the accent furniture that’s gathering dust in your living room? There are plenty of places you can visit online to help you sell these. And don’t think nobody would want these things simply because they’ve been touched by somebody else or they’re not the newest model. You’d be surprised. Just how you’d like to buy something at a discount, so would I… And so would just about everybody else. In a matter of just a few days, I had a handful of people reach out to me to buy a graduation gown I posted online for sale. I had no use for it anymore, but someone else needed it. Another man’s trash is another man’s treasure. But your hesitancy to put it out there may go even further than your unused stuff lying around the house.
Don’t Be Afraid to Ask When was the last time you got a raise at your job? If your answer to this question is, “Yesterday, actually,” power to you! Seriously. And I’ll address that in a second. If your answer is, “It’s been a while,” or, “Honestly… I’m not even sure,” don’t let that get to you. My mother has told me countless times, “If you do not ask, you will not receive.” And like many, on several occasions, I’ve gone on and on without asking for a raise and, therefore, not getting one. Working is supposed to be a mutually beneficial relationship with your employer. The agreement is: You do “X” tasks for us, and we pay you “X” amount. But oftentimes, we end up with increased tasks on our plate beyond what we were hired for… with no increase to our paycheck. So, this is what you should do… Write down what your duties and responsibilities were when you first got the job. Then, write down what they are now. Now, write down how long you’ve been with the company. Then, write down your accomplishments. Did you improve processes at the workplace? What were these improvements? How much money have you saved the company? How much money have you brought in for the company? Finally… ask for a raise! (You don’t need to wait until you’ve been there for a year if your work speaks for itself.) You have it all down on paper what you do and how it contributes to your team’s success. Like I said, I’ve struggled with asking for a raise myself. I felt like it was somehow a sign of me being entitled or ungrateful. But I’ve realized it’s neither of those things, because I know I’ve done more than what’s expected of me, I take pride in my work, and I do it to the best of my ability… And I have a mom who never fails to guide me in the right direction by giving me advice that just makes complete sense. “Ask and you shall receive. Those who don’t ask won’t get!” It may seem bold… audacious, even. But what’s really bold is the fact that your employer has gotten away with giving you more work without giving you more pay. So, there’s nothing wrong with having that conversation with your manager/boss. We all deserve to get paid fairly for the work we do. After all, we do spend a good portion of our lives at work. If your employer tells you “no,” and you don’t get a raise, don’t settle. I’m not saying to argue back and forth disrespectfully. But what I am saying is “no” might just mean “not right now.” Or, it might mean it’s time for you to move on to a new employer. Just take some time to think about your worth. That’s all I’m saying. And even if you did recently get a raise, don’t let that limit you. What about a promotion? Or what about a new employer altogether? You may be able to land a job similar to the one you have now… but for more pay. And that leads me to one last idea I want to share…
Start a Side Hustle Are you the friend people call on when they need help moving? Do you like gardening? Are you good at fixing things around the house? Then, people need you. If you’re a good organizer and it gives you joy, you can offer this as a service to people who find it stressful and exhausting… And you can get paid for it. The same goes for gardening and repair work. Some of us would love to have a flower bed in our front yard or just some indoor plants… kept alive! And some of us may need a few things around the house fixed. But they just cost too much to fix. You can help us… and get paid! Maybe you’re a great amateur hairstylist… Offer to do your coworkers’/acquaintances’ hair for a good price.
Or maybe you like to read and write. You can get paid to read and give feedback on up-and-coming authors’ books. The list goes on. If there’s a hobby you have, get creative in your thinking. You can make some extra cash by turning it into a side hustle. You may find that doing this not only gives you joy, peace, or stress relief… It also gets you one step closer to where you need to be. For some of us, that’s getting started on our debt snowball. And for some of us, that’s getting started on saving for a rainy day (which I’ll talk about next time). Don’t let your financial limitations stop you from reaching the ultimate goal: financial freedom. If we think a little harder, think a little differently, think a little more creatively, we can and will get there.
