You’re spending way more than you're taking in. Here’s how to get back on financial track.

High costs and stagnant wages are hitting lower income and fixed income households the most. 

If you’re underwater and spending more than you’re taking in, new data from StatsCan shows you’re not alone. 

Two strategies can help you get back on track to earn more and spend less. Here are a few ideas to implement both. I've seen people in my community put these into practice and have started seeing more money in their bank account within weeks.

A permanent raise is the goal, but temporary pay hikes can help

If you have been putting off asking for a raise, bonus, promotion or applying for the next level job at your company, it’s time to go after more money.

Yes, this conversation takes courage, but if you don’t ask you might be missing out on an opportunity to ramp up your income.

While you’re at it, update your resumé and cover letter, then apply for jobs outside your company which might pay better and, hopefully, offer a step up for your career skills.

When evaluating job offers, be sure to take into account benefits such as savings programs, retirement planning and health and dental coverage. Even perks like preferred store discounts can feel like a raise, especially if those stores sell essential goods your household buys regularly. 

Shorter term, there are a handful of reliable ways to increase income. Many Canadians are spending some of their spare time in the freelance world doing creative work like design, music, digital services and teaching. Sites like Fiverr and Upwork make it easy to set up a freelance profile. 

If you have time, sign up for overtime or extra shifts at work. Some people are even taking on part-time jobs.

Purging and selling things is a great way to raise money while decluttering your home. 

If you’ve got a basement suite that is vacant, rent it out. And if you’ve got a hobby, maybe it could become a side hustle.

Any additional money that comes your way can be carefully budgeted with extra cash getting tucked into a rainy-day fund. 

Total career transformation can take time, and might include going back to school or taking more training.

These are great things to work on alongside some of these other more immediate income generation strategies. 

Cutting costs is a must-do

Maybe you’ve been holding off on trimming your budget, thinking that rates might come down, but even though it looks like they might, it won’t happen all that quickly. So, financial relief through lower interest payments on your line of credit or a smaller monthly mortgage payment could be months away.

It’s time to chop — in a big way. Consider refinancing, moving back home with your parents, or downsizing to a new less expensive place to live.

Do you really need a car, or could you do without for a while? Could the insurance policies for your home and auto be renegotiated or scaled to better meet your (less expensive) needs?

Are you eligible for a debt consolidation?

Should you completely rethink how you’re eating, and choose a less expensive diet and grocery store?

You should also be looking at the smaller costs, too. Subscriptions, renewals, programs you’re a part of, discretionary spending on clothes, entertainment and hobbies. When lean times happen, many Canadians only spend on essentials, and for things like entertainment, they fill their time with free events, outdoor activities, social visits and more. 

If you’ve never trimmed costs before, start by reviewing every transaction on credit card and bank statements to figure out where the money is going.

You can work back from that and ask yourself what can go from your spending. If you end up with excess funds, sock it away into savings or better yet, pay down credit card debt.

If you need budgeting help, you can often get free advice from your financial institution or local community resource centre. And there are plenty of templates and videos online to learn from.

Better times are ahead. But for now, every dollar you save is a dollar you’ll need right now — or down the road.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.