Making ends meet…

By Finbar Garcia LUTCF, FSS, MFA

‘Making ends meet’…I’ve heard this popular phrase since childhood, often from my mother when she said we had to make ends meet. I could not understand its meaning, but as life would have it, I used that exact phrase many times as an adult parent.

But how can you make ends meet? Let’s look at some ideas and the understanding of that idiom.

‘Making ends meet’ means earning just enough money to cover basic living expenses such as food, housing, transportation, clothing, and other essential bills. The phrase often refers to financial hardship or the need for careful budgeting.

Many families face this challenge today because of the rising cost of living and unstable employment and are simply trying to stay afloat financially. Some people take on a second job or start a side hustle to manage their expenses. There is nothing wrong with that approach, but it should not be done without thoughtful family discussion.

For families with two incomes, this may still apply if they tend to live above their means. Joining their incomes (not literally speaking) will allow some financial management while sticking with their budget and balancing their expenses. So, what really cause families to struggle financially?

• Low salaries, unemployment or lack of proper education
• Inflation and rising food prices
• High rent and utility bills
• Unexpected medical expenses
• Debts and loans
• Supporting large families

To counteract some of these, you will need to look at additional jobs that will enhance your overall income or maybe start a small business at home.

If you’re into baking, you can create a webpage and start an online ordering and payment system and have a delivery person for your orders.

You can also revisit your budget and make any adjustments to your expenses by cutting back on unnecessary spending. This extra can now be placed in your savings account or emergency funding account.

Some may depend on family support, but how long will this continue, as they themselves will have expenses.

Inflation and rising food prices are things that we cannot control but we can control how we spend. Excessive spending will cause some issues, even if you already met your monthly expenses. Any excess money should be saved.

Trying to control your rent will be difficult, unless you move to another location or smaller accommodation. The downside to this will be your comfort level or may incur additional transportation cost.

Unexpected medical expenses will occur. If you do not have a Group Health plan at your place of employment, then you will need to seek a personal plan and that for your family if possible. The cost of this personal plan can be expensive, so make sure and enrol in your company’s plan where possible.

Debts and loans will come to an end eventually. Try not to have them linger too long as this will cause stress. Refinancing debts is an option and whatever extra cash should be saved.

The effects of these struggles, while it may foster some discipline and family values for future generations, can have a negative effect on the family’s current environment itself. Stress and anxiety will set in, reduced quality of life and family pressure. These will have some medical effect.

On the other hand, struggling is not a lifelong problem, it may motivate a person to work harder, build their resilience and determination to do better and improve their family’s standard of living.

We may have all gone through these during our earlier years. How did it affect us and what was the positive side of it?

Making ends meet will always be there. It will never end unless you plan your financial future. Single parents managing a household or students balancing school and work, or even the elderly who depend on their pension income only will have to adjust their lifestyle.

To really ‘fight’ this idiom (making ends meet), you will have to know the importance of financial planning, not just to achieve a specific goal, but for lifelong financial stability.

Sacrifices, hard work and perseverance are the key to success. Appreciate what you have and continue to support one another in society. As they say, when one door closes, another better one opens.

“Excuses make today easy, but they make tomorrow hard…Discipline makes today hard, but it makes tomorrow easy”.

Call me for more information on planning your financial future. Send your questions to myfinancialadvisor2020@gmail.com or call 620-1185.