All of us are afraid of that last week of the month when we are left with a pocketful of cash and start counting those pennies. Is this a time when you reconsider if your budgeting skills are as good as you may have previously thought? This is a common problem which a lot of people experience, so you are not alone.
The challenge comes when you have to make that salary last until your next payday. Here at OneHOWTO we will help you get your budget back on track by giving you tips on how to make money last until payday.
Set a daily budget: As soon as you receive your salary: pay off your direct debts, debits, bills and mortgages, and count the remaining money you have in your wallet. Divide this money into the number of days left till your next payday. This will help you in creating a daily budget. Of course, you will naturally sometimes spend more on certain days, but you can make up for it on other days when you don’t as many expenses.
Compromise on luxuries: Many people waste their money on things they don’t actually need. A large percentage of things we buy are a result of impulse, including products such as: cosmetics, clothes, dine outs, frequent vacations etc. When we go to a shopping mall, we buy many things because we think that we won’t get a better deal in future. But you should avoid making these such impulsive purchases. Before going to the market, always make a list of things you want to buy and only carry the cash you need to buy the items on the list. In addition, don't go to the store unnecessarily, this will only tempt you to spend money you don't really have.
Write down your income and expenses: Writing down or keeping track of your income and expenses is the best way to keep watch of how much you are spending on luxuries and how much you are investing in essentials. By having looking at your spending habits, you can make some changes in your shopping pattern, change your habits and make wiser purchasing decisions.
Use cash instead of card: Once your salary is in your bank account, set a limit on the amount of cash that you can withdraw daily or weekly. We suggest paying with cash and not card when you go out. The reason for this is that cash is easier to keep track of as you can physically see it.
Make a plan: Make a list of all the expenses you expect you will be paying in the coming month. Some of them need to be met every month, while some are occasional, such as: festivals, birthdays, parties, car service etc. Count the money you have and make a plan of how you will be spending it. Try to divide the money accordingly between months which you know will be more expensive than others.
Save for emergency: Make sure that you save a small percentage of your money every month in case of an emergency. If you save a little every month, you might end up saving a good sum which will help a lot when needed.This surplus money is necessary in case of illness of important repairs.
Buy cheap: Instead of buying at expensive showrooms and brand outlets, look for similar items which is sold at a cheaper price in smaller stores. Often, because of the way in which fashion works, cheaper stores will have and produce the same designs as more expensive stores. It's true that maybe the quality of cheaper store material is not as good, but if you are budgeting, it will favor you in the future.
Sell things that you don’t need: Selling unwanted items will not only declutter your house, but will also bring you some money. You can: organize a garage sale on the weekend and/or sell your items online. These days, there are several websites that allow you to sell used items. However, make sure these items are still worth buying, no one will buy your items if they are completely useless and need repairing. In addition, if you are selling an item secondhand, do not sell it at a ridiculously high price. The price in which you sell a secondhand item needs to be fair to the amount of years the product has been used and its current quality.
Save on fuel: Fuel these days is incredibly expensive, for this reason, we recommend: walking, riding a bicycle or talking public transport. By doing this you will save money that you would have otherwise spent. If for whatever reason you have to use a car, we recommend finding the shortest route possible to your destination, in turn, cutting down on the amount of fuel that you use. Another option, if you are going to work for example, is starting a ´carpool´with your colleagues, or if you know people who are going in your same direction. Carpooling should be taken in turns, so that not all of the driving responsibility is left to one person.
Buy food wisely: Food is one of the major expenses everyone makes monthly. Therefore, you need to be wise and careful when it comes to purchasing and consuming your food. Only cook as much food as need for the meal and/or day. Eat leftovers for lunch the next day.Eat at home and not in restaurants, unless it is a special occasion or you have no other choice. By being wise when it comes to food, you can save a significant amount of money every month.
Be careful with your bills: Most companies and vendors allow you to pay your bills in surplus. If you spent less in a month, you can overpay a bill with that amount. By doing this, you will be saved from paying that bill when you already have shortage of money. You may also get some added benefits by paying your bills in advance. Never pay your bills late, in fact, we suggest always paying your bills before the due date.
Look for best of deals: Whether you are applying for a loan, or you are wanting to purchase an expensive item, the best trick is to shop around and find the best deal. If a vendor charges extra for paying by credit card, try to pay in cash. Look for a loan that offers you credit for the cheapest interest rate possible. Call your network service provider and ask for plans that can possibly reduce your call rates. Look for a cheaper broadband plan. Even if at first these savings appear small or low, in the end, they could result in a huge difference in your months expenditure.
Don’t take payday loans: When there is a week left until your next payday, you may be tempted to ask for an easy payday loan. However, we recommend avoiding this option. The reason for this is that most of these loans come with exorbitant interest rates. So, by the time you receive your salary, you’ve got a huge amount of money you have to pay to your loan provider from your paycheck. As a result, this can turn into a vicious loan cycle where you find yourself constantly in debt and having to pay interest.
Stay within your overdraft limit: Stay within your overdraft limits, and pay off any overdraft you have on time. Most people go over their overdraft limit when they are short of cash, despite the implementation of high penalties. Using your overdraft may be a helpful source of income at the end of the month, however, going over the limit may land you in trouble.
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