We hear advice from the media nearly every day about how we should reduce spending and save our money, but that can be very difficult in these uncertain economic times. Many people are struggling to make ends meet and with over 71% of Americans living paycheck to paycheck, making your paycheck go further is more important than ever.
How do you make your paycheck go further? First, you need to determine if you’re spending more than you make. Try tracking your spending for one month. At the end of the month, compare money spent versus money made. If there is a negative balance, then it is time to make some changes. Even if you don’t have a negative balance, the following tips can help you get the most out of your paychecks.
- Consider what you spend on the small things every day – coffee, soda, mid-day snacks or even the newspaper. Individually, these items don’t cost much, but they add up. Even cutting back on a few of the items will help save you money.
- Try eating out less often. If you eat out twice a week and spend $20 on your meal each time, you spend $160 per month! Even running to the closest fast food place can impact your budget. If you buy a $5 lunch four days a week, that’s $80 per month.
- If most of your bills are due at the same time each month, contact some of your creditors to see if they will move the due dates. Many companies are willing to help select a date that works well for you, which will make it much easier to budget for monthly expenses.
- Save money by helping the environment! By changing your standard light bulbs to compact fluorescent bulbs, you will use less energy which will lower your energy bills. They also last much longer so you end up spending less in replacement costs.
- Consider installing a programmable thermostat in your home. By programming your air/furnace to run less often when you are not home or at night, you will use less energy, which saves you more money.
- We all love getting our tax refunds, but did you know that by overpaying on your taxes you are basically giving the government an interest-free loan? Speak with your tax advisor about changing the withholdings on your taxes. You won’t receive as large of a refund come tax time, but your paychecks will be larger because you are paying less upfront in taxes.
Cutting expenses can be difficult, but the peace of mind you will have as a result will make it well worth the effort.
