How can I make my salary stretch?

QUESTION: I need your help in solving a rather frustrating problem which, though not strictly about my job, is very much related. My problem is that before the end of the month my salary is finished, and I either have to get a loan or scramble to find money for the basics, lunch, gas or entertainment.

Let me say I am a young professional who doesn't have a family. I make a fairly good salary, but I have to I pay student loan, rent, car loan, and my utility bills. I also assist my parents financially. My loans are deducted automatically from my salary and I always pay all my bills on time. The problem, though, is that I end up with about J$40,000 which I seem unable to stretch for the entire month.

The other issue is that I don't have any savings. Every time I try to save, I end up having to use the money to get by. What can I do to begin to have some savings, as well as to make my salary serve me through the month?

- Reader

CAREERS: You are right that your financial problem, though seemingly unrelated to your job, is related to it. In fact, money problems affect people's productivity, professional progress and job satisfaction more than they realise.

The CEO of a company I did some training for related that the indebtedness of his workers was taking a major toll on their performance and the company's productivity. He reported that the burden of struggling to find bus fares, lunch money and school fees, and the fear of hire-purchase appliances and furniture being repossessed, made workers unable to focus on their jobs. They were often worried or busy trying to find a way to get money for one thing or another, instead of focusing on the job.

So your problem needs urgent attention before it starts to adversely affect your job performance, reputation and career.

Discipline yourself

Begin by disciplining yourself to prepare a monthly budget and sticking to it. Money is like time, if you don't have a plan for using it, others will help you spend it, or you will end up spending it based on impulse.

Prioritise saving. It is never true that someone earns too little to save. the truth is that most people don't consider saving important enough to make the sacrifice and cultivate the discipline. A foundation principle of wealth and financial mastery is to pay yourself first, with at least 10 per cent of your salary. Save this amount and invest it.

Become a detective of your spending. Discover where you're spending money that you could save. Also, don't walk around with cash you have not planned to spend, or with credit cards. Eat out less. Curtail expensive entertainment. Search for bargains. Limit travel to reduce fuel expenses.

Finally, explore ways of increasing your income and save the additional income. Seek overtime at work, find a part-time job or start a small business in your spare time.

Glenford Smith is a motivational speaker and personal-achievement strategist.

glenfordsmith@yahoo.com