How many times have you gotten paid, and just as fast as your money hits your bank account, the money is gone just as fast? Well, if you’re like most people, this is a common occurrence. It’s so common that it forces you to really sit back and ask yourself how and why is it happening? Are you really living out of your means? … It’s a very high possibility.
The thing about “living out of your means” is that it’s not necessarily that you’re living out of your means… What it boils down to is that you aren’t aware of where your money is going. Of course, you know a bulk of your money is going to major monthly expenses like your rent/mortgage, utility bills, and car note/car insurance, but what about the other places your money goes to?
When you’ve paid all your “big bills” and don’t know where the rest of your money went to, smartaboutmoney.org calls this instance spending leaks.
Obviously, your money isn’t just disappearing out of thin air… You have spending habits that you’re not noticing or paying attention to and it’s wreaking havoc on your paychecks. To get control over your financial situation, you have to know exactly where your money is going. This will require you to jot down every time you spend money, save receipts if you need to, and pull up your bank statements for every time you swipe your debit card.
Once you know where your money is going, you’ll then be able to see the areas you hardly notice where those small amounts of money seem to magically disappear. The good news is that once you find those small leaks, you can then plug those leaks and make efforts to stretch your paychecks every pay period.
If you’re looking to stretch your paychecks every pay period and aren’t sure where to start, here are a few lifestyle and financial habits to practice to gain back control of your money and where it goes.
Simple Ways to Stretch Your Money Every Pay Period
Start Using a Budget
When you were figuring out where your money was going, you wrote everything down. Well, the habit of writing down where your money goes isn’t a one and done type of deal. In fact, writing down where your money goes is part of creating a budget for yourself.
To create a budget, you’re basically planning how you’re going to spend your money. You’ll write down how much money you have coming in for the month and then write down all the necessities you have to pay for (rent, gas, utilities, etc). Once you have all the major bills paid, if you have any money left over, you can plan out how you will spend the rest of it (clothes for the kids, save, paying off debt, etc). This will help you to stay on track and help you to not overspend.
Buy Generic Brands
There are lots of people who refuse to buy generic brands of anything because they think the quality is lower (in certain products they are) but for the most part, name brand and generic product all have the same exact ingredients. With name brands, what you’re really paying for is the name, despite both products serving the same purpose. If you’re someone who is a “stickler” for name brand products, it’s probably a good idea to get comfortable with generic products if you want to improve your financial situation.
Shop For Deals
When it comes to monthly expenses, you’re not trapped in certain prices. Things like your internet, cable, car insurance, utilities, and cell phone provider, come from different providers with multiple options for you to choose from. The companies you’re using right now… there’s more than likely another company offering the same services but at a much more affordable rate.
Just look at Texas, for example. Residents living in Texas don’t have to settle for just one primary electricity provider, they have a plethora of Texas power to choose from. So don’t put yourself in a box thinking “you get what you get”… You have the power to choose a deal that works best for your financial situation.
Dine-In Instead of Dining Out
One of the biggest areas that people spend the most money in is food, and the bulk of your money is going towards the convenience of dining out… It’s certainly nice to not have to cook but a lot of times, the amount of money you spend for a single meal at a restaurant, totals out to two or three meals you could’ve prepared at home… If you’re serious about stretching your paycheck, you’re going to have to cut out the dining out.
There are several more tips and tricks to stretch your paycheck but the tips listed above are going to get you started in the right direction.