Most of us spend a good part of our lives living paycheque to paycheque unless, of course, we get a 100 percent hike or a windfall comes knocking at our door. Sadly, it’s easy to get comfortable living this way and we make little effort to fix the situation. We sort of just leave things to destiny. But destiny ain’t gonna help no one; you gotta help yourself kid.
If you are as smart as you are cool, you will follow these 5 tips to get out of that paycheque to paycheque time loop.
Cause and Effect
Before anything else, it’s important to understand why you’re living from one paycheque to another. Are you an impulsive shopper? Do you have a large family that’s dependent on you? Do you simply like living it up? Make an assessment of where you’re spending your money. Trust us, you’ll be able to find places you can cut down and possibly even make room for some savings.
Show Your Debit Card Some Love
One big reason that people find themselves living from one paycheque to another is because a large chunk of their salary goes towards paying huge Credit Card bills. The current chain works something like this. Swipe Credit Card through the month – big bill – salary day – salary goes to pay Credit Card bill – use Credit Card again. This is a vicious cycle and the only way to break it is to put your Credit Card away. Pick a month and spend on nothing, nothing at all, using your Credit Card. This way you’ll be able to keep any outstanding Credit Card bills to a minimum. Then when you salary comes, pay off as much of this bill as you can afford to and use the rest of your salary to get through the month. Cut out all unnecessary expenditure. No excuses. Do this for a couple of months and you will find that you’re able to comfortably survive using just your Debit Card.
It often happens that just when you make grand plans to stem your spending, a situation will surface where you find yourself at odds with your plans. Such as, your friends might decide to check out a new restaurant in town. Now you might be keen on avoiding this expenditure but find it hard to say no when your friends insist. Nobody wants to play spoilt sport. But rather than giving in to these temptations of life, stick to your decision. It’s ok to say no now and then. In fact, it’ll do wonders for your finances if you are able to say no.
You must fix what is broken. You can so easily summon a plumber or an electrician with an app nowadays, but it’s costly. Despite that, you choose your comfort over budget. Learn to fix things by yourself wherever possible. YouTube has some great self-help tutorials. This will save you tons of money. You could also learn a few tricks and tips to maintain your car and clothes.
This is another way of saying, live within your means. Move to a smaller house with a lower rent, use public transport instead of your car, run and cycle for exercise instead of paying for a gym membership, do the cooking yourself and save the bucks you pay your cook. You get the drift.
Try to implement these tips in your day-to-day life to see the results. And if you have something that’s worked for you, share it in the comments section below.