How To Budget And Save Money Even If You Live Paycheck To Paycheck
Learning how to budget and save money is hard enough, but when money is tight, it can seem downright impossible. Utah Title Loans, Inc. can provide some easy tips for putting money away for a rainy day, even if you don’t have a lot of extra income at the moment.
We can also advise you on the right time to apply for a payday advance to help pay expenses that your monthly budget doesn’t allow for.
Tips For Saving Money On A Budget
Before having to resort to a payday advance on a regular basis, learn how to budget and save money on any income.
A tried-and-true savings strategy will fit any income. Even if you’re living paycheck to paycheck at the moment, there are ways to save money for future expenses and emergencies.
- Prioritize your spending - If you’re trying to save, you will have to sacrifice somewhere — which is not what most people want to hear. Stop spending money on unnecessary things, and put back the cash you would spend on daily luxuries so you build up your savings quickly.
- Treat yourself occasionally, too - Given what we just said, this tip seems counter-intuitive. But if you never treat yourself while saving, it’s hard to keep your eye on the ultimate goal. Whether it’s a big or small treat, give yourself a reason to keep saving every now and then.
- Save loose change - A lot of people already do this, but if you don’t, it’s a way to see money build up before your eyes…literally.
- Put big payouts to work - Tax refunds, etc. can be used for a lump sum payment on outstanding debt to lower your income-to-debt ratio, or you can pay off something that you only have a few payments left on to give yourself extra cash every month from now on.
- Renegotiate bills - Surprisingly, there are a lot of utility and mortgage companies that will work with you on your monthly payments. Check your water bill to see if there have been fluctuations that may indicate a leak. Refinance your car or home. Ask your cable company to lower your rate. Anything you can do to pay less on monthly bills can be put directly into savings.
It is possible to save money, even when you’re on a budget. Let’s see what your budget might look like when you’re living paycheck to paycheck.
Budgeting When Money Is Tight
Budgeting is important regardless of how much money you have, but it’s crucial when you don’t have a lot of disposable income.
Once you see how to budget and save money when you’re living paycheck to paycheck, the easier it will be to apply the same principles even when you have plenty of money in savings.
A good plan for setting up your budget is the 50/30/20 rule.
- 50% for necessities - This includes bills, groceries, mortgage or rent, and car payments.
- 30% for spending - This cash is to be used at your discretion. Who knows what will pop up each month: kid’s school fees, going out, extra household purchases, and gifts just to name a few things.
- 20% for saving - This is the hard part. This portion of your paycheck is not to be touched. It can go into more than one savings account, but it should be reserved for emergencies or long-term financial goals.
This guide is easy to follow regardless of how much money you make. It’s also easy to modify if you are able to save more every month or just some months. For example, the 30% that you spend on entertainment, shopping, and eating out, could be stashed away with a little discipline to save extra for a vacation or big purchase.
You can also tweak the numbers a little if you have an unexpected expense like replacing a kitchen appliance or repairing a vehicle to get you back and forth to work.
Our best piece of advice for budgeting is to write it down. Whatever your specific numbers look like, you’re much more likely to follow your budget when it’s on paper.
Payday Advances Can Keep You On Track
Without fail, when you’re learning how to budget and save money, something unexpected will pop up, potentially derailing your efforts.
Fortunately, Utah Title Loans, Inc. can help you supplement your income with a payday advance so you don’t get behind on bills or go without necessities.
To apply for a payday advance, if money gets scarce between paychecks, contact us via the web, by phone, or walk into any one of our convenient locations state-wide, and someone will assist you on the spot.
To get started, you just need your I.D., your most recent pay stub, and a blank check to qualify for a payday loan.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.