Living Paycheck to Paycheck? You Can Still Save

There are some things that we are not able to go without like food, housing and so on, but when you are living paycheck to paycheck it can be difficult to afford these necessities, especially when things are going up in price. On top of this, you know that you need to save, but this may seem like an impossible scenario.

However, even if you are living paycheck to paycheck, you are still able to save money, you just need to make some smart money moves and you will start building your savings in no time.

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Here are some great tips that you can start using to save money when you are living paycheck to paycheck.

Have a Budget

This is the first step and the most obvious thing that you will need to do. You are not able to manage your finances and your spending without a budget. When money is tight, your budget and sticking to it is highly important.

To begin your budget, you should write down what you earn every month and write down every category that you spend money in from your utilities to take away food. You will be able to see what you spend and where you can make cuts.

When you are determining what you are able to spend in each category, make sure that you leave some room for savings, no matter how small.

Keep in mind though that your month’s budget will not be the same every month. For, instance, you may find that you will need to pay for car registration one month and then the next month, you may have something else to pay for and so on.

Also, you may find that you will need to pay a little extra in the summer to keep your house cool or you may need to get birthday gifts etc.

You should write down events like these and when they take place, you can adjust your budget that month in order to accommodate for the extra expenses. This will help you to save, but it will also make sure you and your finances are prepared so that you don’t get any surprises.

Get Your Debt Down

Once, you have got your spending down and made the necessary cutbacks, you can now look at your debt. The faster that you are able to pay off your debt the better as you will pay less in interest.

Start tackling your debt by paying more towards the debt that has the highest interest rate. If your credit card has very high rates, then you can look at getting an online loan that has a lower interest rate than your credit card. The idea then would be to pay off your high interest credit card debt with the loan and then repay the loan. You will save money because the interest rate on the loan is lower.

Wait…there are still more tips below…

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Get Rid of Your Cards

If you are finding it hard to stick to your budget or are tempted in the grocery store to buy extra things that you don’t really need then you need to take action.

A credit card makes it harder to stick to a budget, this is because we fall into the trap of just swiping for purchases without thinking about what we are spending or we brush off overspending leaving it as a problem for another day.

If you are having issues like this then you may want to consider cutting up your cards, leaving them at home or even freezing them and just using cash to pay for everything. With cash, you are able to visualize a lot better about how much you are spending, but you are also limited to the amount that you have in your wallet, making overspending a lot more difficult.

Get Yourself a Savings Account

When you are living paycheck to paycheck, you will probably be only able to save a little amount each month. Keeping your savings in your checking account will make it difficult for you to see how much you are saving.

You should open a separate account for your savings, so that you can keep better track of what you are saving. Also, seeing this account grow can help motivate you to keep going and save a little each month. You will also be less likely to spend your savings when you have a separate account.

When you are choosing a savings account, try and find one that offers an interest rate so that your money grows a little each month and one that is free to have.

Ask to Waive the Fee

There are times that you may not have been able to pay a bill on time, so you were given a late fee that hurt your finances, but have you ever thought about asking the company if they would be willing to waive the late fee?

This may not work, but you have nothing to loose by asking and you may find some companies will be willing to do this for you.

Keep reading for some more tips…

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Make it a Challenge

Once you have been sticking to your budget for a month or two, you will notice that it gets easier to monitor your spending. This is then the perfect time to challenge yourself to make little cutbacks in all your spending categories. Even if you are not able to cut back in all your categories or only able to make small cutbacks, the money will add up.

Switch Your Car Insurance

You are able to lower your car insurance premiums by shopping around, so you could potentially save money in this area.

Car insurance companies think that once you have signed up with them, you won’t leave and you may think that it is a pain to get new quotes and switch. However, staying with the same company may mean that you are not getting the best deal anymore.

If you have a good driving record but your premium has stayed the same or has even gone up over the past few years, then look at getting some free quotes and see if you are able to save on your premium by switching companies.

Increase Your Earnings

You are only able to cut your spending by so much and once you have done that; you may need to look at ways that you can increase your earnings.

It can be hard to find a job that pays better or to take on another job but there are other ways. You may find online survey companies will pay you to watch videos or take surveys. They don’t pay much but if you do it on a regular basis then you can earn a little extra.

You can also look for a freelance job where you can set your own hours and make some extra cash.

When you are living paycheck to paycheck, you are still able to save money, but you will need to be disciplined and manage your finances so that you can.