Money is wonderful – when you have it – but if you are living paycheck to paycheck each month, you are probably under a lot of stress. Not only are you looking after yourself, but you may have a family too, so while the next paycheck is a blessed relief, it can also be a nightmare when you run out of money halfway through the month. How many more days is it until that next paycheck arrives?
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Thank goodness it’s Friday! (image)
In this article, we will give you some advice. While some of it will be familiar to you, it’s always worth having that constant reminder. Living from paycheck to paycheck is tantamount to disaster, so here’s how to break that cycle.
Living from paycheck to paycheck is tantamount to disaster, so here are a few sensible ways to break that cycle and enjoy every day as much as you enjoy payday.
Create a budget
Chances are, you already know what’s eating up your finances each month. Still, it’s always worth sitting down and looking at your income and expenditures and working out where savings could be made. If you are spending money on unnecessary items or services, you need to cut down and focus on the important areas of your life – food, clothing, and those pesky utility bills. Only when you are confident you can afford those other luxuries – takeaways, cable subscriptions, etc. – should you then consider them again.
Cut down on your bills
An expensive bill landing in your mailbox could make a huge dent in your bank account, especially if you haven’t budgeted for it. However, it is possible to save money, without you having to declare yourself bankrupt before the month is over. We have some wonderful tips for saving money around the home, and you can also make a substantial saving by changing your utility provider.
Get out of debt
Being in debt is nothing to be ashamed of – most of us have at least one debt hanging over our heads – but if you are struggling to pay them off each month, with little money left over for the basics in life, you need to deal with the problem. The best way of doing this is to consolidate your loans, by refinancing student loans and transferring your existing monthly balances onto something with a lower interest rate. Then consider your credit card use. You should never use your card for something like your monthly shopping, as you will only end up in worse debt. Once you have consolidated your cards into one payment, cut them up so you are never tempted to use them again.
Make extra money
If you are stuck in a minimum wage job, it may be worth thinking about your career plans, and moving to another position. Of course, getting a second job may not be an option you are able or willing to take, but there are still ways you can make extra money each month. From taking online surveys to using cashback websites for your shopping, it is possible to boost your income and ease your financial worries.. When you do find yourself with extra money at the end of the month, don’t be tempted to use it straight away. Put it into your savings or emergency fund, as you never know when that extra cash will come in useful.
We hope you found our advice helpful, but remember to speak to qualified professionals, such as those specialising in debt management. Many of us do live paycheck to paycheck, but with the right advice, you may be able to break the cycle forever.
This is a contributed post.
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