Whatever job you do and however much you are paid, managing your pay check well is important. So how do we make the most of our paycheck and make it go further?
Set a Budget
Working out a realistic budget is the foundations of making your pay check go further. Sit down and work out all your essential expenses first (rent/mortgage, utility bills etc) and then move onto other expenses in order of priority. If you realise that your rent is taking up too much of your pay check, could you downsize or find somewhere cheaper to rent? What bills could you reduce? Get creative and see what expenses you can reduce in order to free up more of your pay check. You could try tracking all your expenses for a month to get a true indication of what you are spending your money on, so that you can get really clear about what you want to keep spending on and what can be cut.
Live Within Your Means
Once you have set yourself a budget, make sure you live within your means. It is important to make your budget realistic and achievable so that you don’t set yourself up for failure.
Keep Track of Your Money
Take responsibility for keeping track of your money, ideally on a daily basis. This will stop any unexpected surprises occurring at the end of the month and allow you to readjust your spending as necessary to achieve your goals.
Look for Ways to Cut Expenses
Keep looking for ways to cut your expenses. This can be fun and it is often surprising how many ways there are to save money! Once you get in the habit of doing this, you will start to notice more and more ways to achieve more from your money. This will involve questioning your purchases and the way you live. For example, do you have to have a new work outfit? If not, save the money. If you do, could you buy something in the sale or at a thrift shop? There are many ways to do anything; try looking at new ways to achieve the same goal (packed lunches, walking to work etc).
How could you earn more? If you are self employed, what could you do to bring in more revenue? Have your prices been the same for years? If you are employed, is it time you ask your boss for a raise? Or to stay on the same salary but work less hours so that you can start that side business you have been thinking about?
Saving some of your pay check is important if you want to set yourself a good financial foundation and avoid living pay check to pay check. Start getting in the habit of saving every month, even if it is just a little to start with.
Bio: Jen Smith is a Life Coach, Mentor & Writer. She has tried many career paths herself and now helps people achieve their goals and dreams.