Five tips to stop living from paycheck to paycheck
Tired of not having any money left over at the end of the month? Here are five tips to help you stop living from paycheck to paycheck.
You work hard every month to provide for your family, to put food on the table and keep a roof over your head. However, there always seems to be an inevitable point every month where you’re desperately trying to make ends meet and you’re holding out until the next payday.
When you’re living paycheck to paycheck, the idea of getting ahead and planning your future seems inconceivable. Whether you’re trying to avoid putting more fuel in your car, or you’re having to overspend each month and getting yourself into more and more debt, getting out of this vicious circle can seem impossible.
If you’re struggling to find the right financial balance, you’re not alone. Here we’ll explore five simple tips to stop yourself from living paycheck to paycheck.
1) Start setting money aside
When you have money in the bank, you’re no longer living from one payday to the next. Setting money aside for an emergency fund or for your children’s futures – check out this junior ISA from Wealthify– is the first step into getting out of this vicious financial circle.
Start as soon as possible. Building an emergency fund means that if there is some kind of financial emergency, you can source the funds from your emergency account rather than your paycheck fund.
2) Make a budget
Budgeting is the most effective way to manage your money correctly. When you know what you have coming in and what you need to pay out, it’s much easier to set a budget for the rest of the month and to manage your other expenses. Start by making a list of all your monthly expenditures and be honest.
Even the littlest of spends can add up and start causing problems for your finances. An effective budget will highlight all the areas that you might need to revise. Subscriptions you no longer want, streaming services, your takeaway habit. Go through everything with a fine-tooth comb and budget ruthlessly.
3) Stop spending!
As mentioned above, all those little spends can quickly add up. So the fastest way to stop yourself from burning out your monthly wage is to reduce your spending.
The less money you spend, the more money you’ll have to place in your emergency fund or cover those debts that are hanging over you. Look at each section of your budget, whether it’s transport costs, food, entertainment etc and see where you can stop spending.
4) No more credit card purchases
When you’re in debt it can really drain your monthly income. And there may come a point where less and less of your money is actually yours. When you put a stop to those impulse credit card purchases, you’re in better control of your spending and your overall bank balance.
Prioritise paying off your credit card debts and when they’re gone, get rid of them completely.
5) Finally, sell your stuff
Selling unwanted items is a quick way to boost your current funds and keep you one step ahead of your finances. Old books, DVDs, furniture, clothes, shoes, anything you no longer want can be sold and the money used to give you some financial breathing room.