No one knows if our income will decrease in the future. Nowadays, everyone is at risk. Even salaried employees may face pay cuts or job loss. Freelancers or business owners also experience ups and downs. As we observe the overall economy worsening, it's clear that everyone is adjusting to reduce expenses. For those affected by financial crises and shrinking income, we have some strategies to help lighten the load during tough times.

1. Stay Calm and Accept Reality

To find a solution, look around; you are not the only one struggling. This awareness can boost your morale.

2. Assess Income and Expenses

How much money do you have to spend? How much savings do you have left? Will you receive your full salary this month, or only part of it? Once you gather your financial information, start planning your daily expenses. If you still have some income, remember to save for emergencies, as we cannot predict how long we will be in this situation.

3. Cut Unnecessary Expenses

Keep only essential expenses. For general spending, reduce your consumption and prioritize your expenses. Identify what can be cut first, such as luxury or non-essential spending. Instead of driving, consider using public transport like the subway or bus. If you usually take a motorcycle taxi into a neighborhood, try walking instead. If you have debts with interest, negotiate with your creditors, as debt is a significant issue. If your income is lost and you can't continue payments, you need to negotiate for a deferment.

4. Find Additional Income

This may sound challenging in the current economic climate, but there might still be jobs in demand. The first step is to not be ashamed or afraid of what others think about your situation. Be bold in offering your services. Remember, you are working honestly for survival, which is not a loss. For example, you could care for the elderly on weekends, babysit, or pet sit. If you have other skills, such as translation, making cloth masks, baking, or cooking to sell online, these can also increase your income.

5. Organize Your Income Systematically

After cutting unnecessary expenses, it's time to look at your available income. If you feel you cannot manage your money as expected, consider getting help. For example, try to set a daily spending limit and stick to it.

6. Keep a Record of Income and Expenses

Recording your income and expenses is an effective way to organize your spending. It allows you to see your income and expenses clearly each month and helps you identify if you are overspending in certain areas. This is a good starting point for making changes during a time of reduced income, and it can become a good financial habit for the future when your income returns to normal.

7. Stop Relying on Luck for Financial Future

Whether it's the lottery, underground betting, or any form of gambling, thinking of it as a small amount of money is misleading. In the current situation, every baht counts; 90 or 100 baht can buy you a meal or two. Stop depending on luck for your future, as the chances of winning are very low. Instead of risking your money, it's better to save it for future use.

In times like these, you are not alone in your struggles or in facing reduced income. Once you manage your spending effectively, don't forget to set aside a portion for savings or investments. It's recommended to save at least 10% of your income. When your financial situation improves, you can increase your savings and investments. There are various ways to grow your money, such as fixed deposits or investing in mutual funds. If you want tax benefits, consider SSF or RMF funds. If you want both savings and protection, you can invest in a life insurance policy with savings.

SOURCE: www.scb.co.th