What is Petsa de Peligro
It's the day(s) when you have to stretch your remaining cash on hand to make it last until the next payday.
Yes, that salary is just around the corner, but there's this tiny little issue that needs to be addressed. It's called the 'right now'.
We learn to get creative with our finances in order survive petsa de peligro. Nevertheless, many may still find themselves back in the same cycle after a couple of weeks.
Here are some tips on how to break free from the Petsa de Peligro routine:
Plan a budget (and stick to it)
As long as you are in the work force, a paycheck is guaranteed. When you know when and how much money to expect, you can also manage to budget based on your foreseeable expenses.
The main purpose of budgeting is to eliminate money leakage. The idea is to allocate your money in advance so you don't end up falling short.
Now, sticking to the budget is just a matter of self-discipline.
Find other sources of income (side hustle)
A guaranteed monthly cash flow provides security. But, we can always use some more.
Enter the entrepreneur in you. Think of some ways to make an extra buck - by selling goods or rendering services.
I constantly explore ways to create multiple sources of income - preferably passive income.
Track credit card spending
Just to be clear, using a credit card when you're short on cash is never a good idea.
As a rule of thumb: whatever you spend on credit, there should always be the equivalent amount sitting in your bank account to pay it back.
A problem may arise when you lose track of your spending and fail to make a full payment before your due date. Credit card fees are steep!
Use existing resources
The worst thing you can do to tide you over this short period is to take out a loan (cash advance, charging your credit card, getting a payday loan).
Before you look into external resources for a solution, re-evaluate your exisiting ones first. How about checking for loose change or bills in your desk drawers? Or maybe you can ride your bicycle to work for a few days.
Frugal living (live within your means)
If there's an obvious gap between payables and receivables, then something's got to give.
A good way to measure your spending habits is by listing them down daily or using a budgeting app. This way, you can see if there's something you need to adjust in your lifestyle choices. Don't let FOMO (Fear Of Missing Out) get to your head.
Make wise choices (price comps)
Maybe it's my OCD, but this is the main reason why I take a long time doing groceries. For starters, lose the brand mentality. Generic goods are usually just as good as unbranded ones.
Little savings can go a long way. I'm not shy to whip out my cellphone calculator in order to do price-weight comparisons.
It's a struggle to make it through Petsa de Peligro. Congratulations if you pass it with flying colors! Now, you can move on to the first step in financial freedom: building your emergency savings fund (EF).
Got more tips to add? Share them by leaving a comment below.
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