From the rising cost of living to unexpected emergency expenses, the stress of living paycheck to paycheck is all too real for millions of Americans. One wrong move and you could empty your bank account well before your next payday. This guide will give you some handy tips to help you stop living paycheck to paycheck.
One of the most effective things to do is to start organizing a monthly budget so that you can track your spending across all avenues, including the occasional ones like taxes and car registrations. Start by writing down your income for the month. Then list down every expense, including rent/mortgage repayments, Internet, groceries, insurance premiums, utilities, mobile phone expenses, gas, childcare, Netflix, Apple TV, and more.
Cut Down Unnecessary Expenses
Once you plan your budget, you’ll have a better picture of outgoing expenses. It will clearly show you where you’re overspending. For example, can you reduce grocery costs every week? Do you need takeout three times a week or can you limit it? Can you find a cheaper phone plan? Cutting down unnecessary expenses makes it easier to save for a rainy day.
Put Any Savings in Another Location
Even if you are saving the smallest amount every month, it’s better to remove it from your regular bank account and put it where it is not easily accessible. Leaving the extra money in your account can easily tempt you to spend it on something you don’t need, which hurts your efforts to secure crucial funds for your future.
Stop Relying on Credit Cards
It’s easy to swipe your credit card for literally everything you want, but it can also cause you financial stress if you are unable to pay back your expenses quickly. Credit card interest rates are high, which means you’ll be paying back more than you spent over time. Try to stop or limit credit card usage, so you don’t end up with more debt than necessary.
Save Any Pay Rises or Bonuses
If you’ve just received a monthly pay rise or a one-time bonus, you don’t need to spend it immediately. Instead, try to save the extra money since you’ve already got your monthly budget planned. Don’t just increase your expenses in proportion to your pay hike because this puts you right back at square one.
If you are looking for credit repair companies or need credit counseling services in and around Philadelphia, give Quality Credit Repair a call today to make valuable changes and start securing your future!