Does it seem like every time you get paid, your money just disappears and you’re left scrambling until your next paycheque?
You’re not the only one! Many of us get a little spend-happy when we see that money deposited into our account. We go out for dinner that night, to treat ourselves. Then we might go shopping, to treat ourselves, of course. Before you know it, your entire paycheque has been spent, while you still have bills to pay and no savings to speak of.
These following tips are all about stretching your paycheque as far as you can so that the time in between paydays can be a lot less stressful.
3 Tips to Make Your Paycheque Last Longer
Spend money like you don’t have any
Contrary to the fun you can have blowing your whole paycheque at once, this method will make you feel very financially responsible. While it may be boring, it’s always a good idea to pay your bills the day you get paid, or at least organize your bill deadlines so that the ones due right after your payday get dealt with.
Next, you’ll want to stash some cash in your savings account. Whether you can handle building your savings yourself, or you need to make automatic withdrawals, make sure you have money leftover from payday to do this. Trust us, you’ll be much happier with a plump emergency savings, then you will be with your new gadget or clothes.
Now, purchase your essentials. By essentials, we basically mean groceries and fuel for you car. If you can avoid buying fuel by riding your bike or transit, even better, but factor this into your paycheque because no one wants to be stranded with no gas money.
After you’ve gotten all of these straightened out, divide the lump sum of what you have leftover by how many days until your next paycheque. An example: $500 leftover divided by 14 days until your next paycheque would be roughly $35 a day. Once you have that number in your head, set a budget that is less than that. So, $20 to spend a day. This is still a lot, so if you can, aim to spend $10 a day.
By following this daily budget of only $10 a day, you will end up with $360 until your next paycheque. Sound awesome or what? Now you can put that money towards something you truly need or want, invest it, or use it instead of dipping into your emergency savings.