Stop Living Paycheck to Paycheck

Hello friends,

The happiest ten minutes of my life is when I check my bank account and find that my pay check has been deposited. It lasts about that long because as soon as I pay my bills, it is almost gone.

This GIF shows exactly how I feel......

I know what it is like to live paycheck to paycheck. Seeing all the money saving advice of “pay yourself first.” Sure, that works if you don’t need to put gas in your car or pay your phone bill. How can you pay yourself first if you need every last cent of your paycheck?

WHAT SHOULD YOU DO?

Write down every single cent you spend from one paycheck to the next and create a budget. You may be surprised at where your money is going. I tried this and it was tedious, but it was a good lesson. I found that I was running to the gas station next to where I worked and overpaying for lunch items. I hadn’t even given it a thought before, but when I realized it had become a habit, I was wasting extra cash on a daily basis and it had to stop. Keep a small notebook with you so you can jot it down.

Pay attention. Look around you to find ways to cut costs on a daily basis. Many times we spend money on conveniences like fast food restaurants. If you’re working full time, this is hard to avoid. When I’m starving and I don’t have a lot of time, I just want to go through the drive-through and grab something to fill me up. However, prepackaging snacks from home is not only healthier, but cheaper. This requires preparation and knowing what part of day you will need a pick-me-up and what it will take to satisfy you.

Preplanning. I promise that you’ll save money at the grocery store by planning your meals. Once a week we sit down as a family and decide what we want to cook the following week. We go through the pantry, find ingredients, and then make a note of what we don’t have. By doing this, we avoid impulse purchases and overspending at the grocery store. We also avoid wondering what we're having for dinner any particular night. 

It’s fine to go out to lunch once in a while, but be sure this is built into the budget and decide ahead of time how much you will spend. If the social aspect of going out with friends is important to you, try ordering from the a la carte menu or choose a place that is within your budget. 

Do it yourself. High costs are built into prepackaged foods. Cut costs by making your own meals. Not only is cooking a great skill to have, but it is healthier to learn to cook whole foods and cheaper in the long run. If you're careful, bulk ingredients can be less expensive than prepackaged foods. My husband likes to make oatmeal in the mornings and then add his own touches (walnuts and maple syrup) to it. It's healthier and cheaper than the little prepackaged packets you find in the grocery store. 

Cut the cable. Purchase a ROKU or other device that will stream television and you can get rid of cable all together. Sign up for Amazon Prime, Hulu or Netflix, and you can enjoy hours of television and movies at a very low cost compared to what you were spending for cable. I found a Roku on Craigs List for half the cost and it worked perfectly.  

Save on electricity. Unplug all unused appliances, even if they are on a power strip. Even if an appliance is off or the power strip is off, you may still be drawing electricity. Why pay for it if you’re not using it? It may take a while, but you’ll see a difference in your electric bill.

Be the family power Czar, if a family member is not in a room and the lights are on, train them to turn them off. Also, check to see if your home is properly insulated to save in heating and air conditioning (I mentioned this in a previous blog post). A little extra insulation will go a long way in saving you money.

Lastly, change out all light bulbs to LED. They are cheaper, last longer and use less energy. I’ve been using LED lights for eight years now and you couldn’t pay me to go back to incandescent bulbs. Actually, to be honest, you could pay me--but it would have to be a lot of money. It's true--I can be bought.    

The bottom line--you need to know where your money is going before you can start cutting costs.

   

 I know from personal experience that budgets aren’t fun, but it may become a necessary evil when trying to figure out where your money is going and how to get off the roller coaster of living paycheck to paycheck. 

Peace my Peeps,

Broke Girl