Imagine this—every two weeks you get paid. It’s at this point you can start the routine of paying all your bills and making other essential payments. But this time, thanks to an unforeseen parking fine or data overage on your cell phone bill, you don’t have as much in your account for the necessities, so you try to make that money stretch until the next payday.
Research from CareerBuilder found that an overwhelming number of workers are in the same boat. The national poll revealed that a whopping 78% of American workers live paycheck to paycheck and struggle to make ends meet. If you’re exhausted from the cycle of stress and penny-pinching, here is how you can break out of it.
If you’re worried that you don’t have enough money to put into a savings account, you should try to trim your spending. Take a look at your monthly expenses to see what is necessary for your survival like rent, utility bills and groceries. Then you can determine what other spending habits you can eliminate to increase your savings.
Gym memberships and other fitness programs are popular budget-destroying expenses that siphon dollars out of your accounts, even when you haven’t attended the facility in weeks. The cost of membership ranges between $40 to $50, not including add-ons like classes, gear and personal training. Instead of spending hundreds of dollars to exercise, you should do your workouts at home for free.
Another one of the simple ways to cut your expenses in order to save money is to make home-cooked meals instead of dining out all of the time. Dining out includes calling for delivery, ordering take-out and going out to restaurants. Those meals will be much pricier than anything you make in your kitchen.
Make A Responsible Budget
Most people have a general idea about what’s sitting in their account, but they don’t keep track of the specifics. They wing it and then panic when they’ve spent too much. The best way to stop living from paycheck to paycheck is to set up a reliable budget — it’s an effective tool to keep you on top of your expenses and to prevent you from draining your account.
After you’ve set up your budget, you have to stick to it. Have it all written out or loaded into a spreadsheet so that you can track your spending. Use alarms and reminders on your phone to tackle bills and other payments. You can always adjust the categories of your budget to better fit your life, like moving more money into the utilities section during the winter.
Put Money Away
It’s wise to put money aside to help you pay for additional needs and big financial goals, like going to school or purchasing a vehicle. Putting money into your savings account also gives you a dependable safety net when an unpredictable expense pops up. A shocking 63% of Americans don’t have enough savings in their bank accounts to cover a $500 emergency like a broken tooth or a stalled car.
Having a tight budget isn’t a good excuse. Savings will grow over time. If you make a habit of putting $20 in your account every single week, you will end up with more than $1000 by the end of the year. That’s not even counting the interest you’ll earn. Even the most basic savings account offers interest on your savings, which will boost your balance.
If you don’t have anything put away and one of these urgent expenses crops up, you can turn to MoneyKey. Depending on where you live, you may be able to apply for installment loans online so that you can pay for these issues in a hurry. This quick fix will get you to the dentist’s office to treat your tooth or to the mechanic to repair your car. As this is an expensive form of borrowing, you should reserve online installment loans for one-time emergencies you can’t ignore.
You can visit Moneykey.com/installment-loans-online/ to find out what types of loans they offer and which of those you may be eligible for. The online application process is fast and straightforward. Applicants can get their money in as early as the next business day.
Living from paycheck to paycheck can be very stressful. You have to make some lifestyle changes to make your finances work better for you. Cutting unnecessary costs, building a budget and putting money away will make your earnings last longer. When you follow these tips, you won’t be gripped with anxiety every time you open your wallet.