‘Payday’, seems to come slowly yet it can also be gone within seconds. If your outgoings are coming out faster than your income is coming in, then it’s time to be strategic with your spending.
So how do you make your pay stretch until your next payday?
Assess everything you spend your money on
From Starbucks to monthly subscriptions, there are many financial obligations that aren’t an essential part of your income. Take a moment to think about where your money is going. Apart from bills, there may be other expenses that could be cut down dramatically.
A perfect example:
You grab a medium coffee every morning, Monday to Friday at Costa for £2.55.
That equals to £12.75 a week, £38.25 a month, £663 a year.
£38.25 a month may seem small in comparison to what you earn. It may not buy your first home but it could be used towards a holiday you’ve been planning for months.
It’s worth asking yourself, ‘Where does my money go‘?
Budget your day to day spending
Whether it’s buying lunch on your work break or after work drinks, be honest with yourself and set a limit on how much you can spend. You can do this by setting a daily allowance. Setting a daily allowance helps you to avoid wasting money on unnecessary things.
Related: Tips To Stop Overspending
Limit your lending
Lending money to friends and family can lead to uncomfortable situations. If you have people who are coming to you frequently for money then you may need to change the situation in order to prevent yourself from being out of pocket for too long. Never feel pressured to lend money, remember that you have your own expenses and needs to deal with. How you distribute your money is ultimately up to you.
Set money aside for a rainy day
Setting money aside for a rainy day could be beneficial in the long run; especially if you have an upcoming bill and you haven’t been paid yet. And when you do get paid, set money aside for an emergency fund so you’re not dipping into your overdraft or relying on a credit card to bail you out. Although credits cards can be useful if you know how to manage it, an emergency fund leaves you with less financial guilt in the long run.
This post was written by Freda