Payday arrives. You pay your bills, pick up your groceries, fuel up your vehicle and then…..the money is gone. You didn’t even have it in your account for 48 hours before it was all spent and here you sit, broke until payday arrives again.
This may seem like a vicious cycle you can’t break. However, you CAN! You just need to know where to start and how to get out from under that heavy weight.
1. You’ve Got To Have a Budget. First and foremost. Not just a budget that you know in your mind, but a budget in writing. You have to know where you money needs to go before you can figure out where to free up money.
You can download our FREE budget template, or even Excel versions to use!
- Budget Worksheet (Customize and save your personalized budget)
- Budget Worksheet (Print and complete by hand)
- Budget Form Spreadsheet (Excel format)
You will want to make sure you read more about How to Create A Budget so that you can fill out these forms the right way.
2. Where Does Your Money Go? Now, once you have your budget in place, look at those items where you may find you over spend. Do you grab a latte on the way to work every morning? If you spend $5 a day, that is $25 a week and $100 in a single month! Imagine what you could do with an extra $100 in your pocket!
3. Step Away From the Plastic. Another way to prevent overspending is with cash. No, that doesn’t mean use your debit card. We are talking cold, hard, cash.
I know, I know, they are so convenient. However, if you stick with CASH, you can’t overspend. If you have $100 to spend at the grocery store, you can’t spend $110. However, if you use your debit card, it is easy to say “It’s just $10.” If you do that every single time you go to the store, that is more than $500 overspent in just a single year!
It can be tough to start using cash, but once you do, you’ll wonder why you didn’t start sooner! To learn more, click over to read How to Use the Cash Envelope System.
4. Define needs vs. wants. This is a tough one. Take a look at your budget and what do you need? You need clothes, shelter, food, utilities. However, do you “need” cable? Do you “need” to dine out every week? By simply cutting back on your wants (even temporarily), you can free up money from your paycheck. (Read more about Wants vs. Needs).
5. Ask for help. If you are in debt or owe companies money, why not call and ask them if they can’t help. Many times, they are willing to help you make changes to your payment due date, adjust interest rates and more. If you don’t call, you will never know what they may be able to do to help you!!
6. Stop the waste. Did you know that you do not have to fill the laundry cup to the top to get your clothes clean? Did you know that you can use a smaller amount of toothpaste and your teeth will still get clean and freshen your breath? By simply cutting back on the amount of product you use, you can save money by not having to purchase it nearly as often! Here are some tips on How to Use Less Product (without sacrificing quality).
With some simple changes, you might find ways to free up some cash, and end that paycheck to paycheck cycle!