Saving Money While Living Paycheck to Paycheck
When you were young, you were probably taught about savings. Your parents or grandparents even got a piggy bank for you.
They’d make sure every time they gave you the cash you put it in savings. But, we must admit that growing up, life has its ups and downs.
You find saving becomes harder due to the expenses and responsibilities.
Sometimes, you find yourself living paycheck to paycheck because the income you get is not enough to keep up.
Everyone goes through hard time at one point, so there is no shame.
However, the idea is, even as you live paycheck to paycheck, there are some lifestyle changes you can make to make sure you save to get out of your rut.
Determine Why You Want to Save
The first motivation to save money is to have a reason. Why are you saving money? Is it to take a vacation to Santorini or saving for retirement?
You need to have a motivator as to why you are saving. It takes a lot of discipline to save, which is why you need your ‘why.’
It could even be a down payment to your dream house. However, saving needs some sacrifices made which may not be easy.
Always have the end goal in mind to help you get motivated to save.
Maybe it is just to catch up and start saving for a rainy day.
Consider a Separate Savings Account
Sometimes, you need to start anew. Opening a savings account specifically for your savings is a great start.
Especially if we only have one account where all the money comes in. You need to separate your savings so that you can keep track.
If you’re living paycheck to paycheck, you may find that you have more expenses than their income.
As cliche as it sounds, budgeting is essential.
Give yourself two months to monitor how your expenses look like and then you can draft a list of all your expenses. Have the necessities as a priority and keep others as secondary wants.
Budgeting helps you know what you need and what you don’t. It will help you cut down on the expenses and get to save.
If you have unnecessary subscriptions, cut them. You may be too busy even to watch some TV shows.
If you have Netflix, VH1 or any other subscription and you don’t need it, it’s time to say goodbye.
Set Short-Term Goals
While you have a long-term goal in terms of what you want to do with your savings, you should start with a short-term one too.
This is to help you get started and motivated.
You can set a goal to save $100 in two weeks. Once you do, it’s easier for you to get motivated about saving for your dream house or some investment.
Another option would be to start tackling debt.
If you are in arrears, try to counteract the ding on your credit by asking for a pay for delete.
You can write a pay for delete letter to the debt collector to see if you can negotiate how to pay the debt. Crediful offers a few examples you can use.
Have a Hustling Mentality
Sometimes, the reason we never save is that we don’t have a money-making mindset.
If you don’t have the mindset, you’ll not spare even a dime.
Change how you think and start seeing all the positive possibilities that come with saving.
Invest Your Money
When you only save, the money becomes idle in the bank. One option is going for an account that will earn you interest.
However, these savings accounts will earn very little interest, but it’s better than nothing.
There’s no obstacle to how much you can grow the money. Consider looking for options to invest the money so that eventually money can work for you and avoid living paycheck to paycheck.
You could look into peer to peer lending, look into real estate as well or even forex trading.
There are a million ways you can earn more money through your savings.
Automate Your Savings
The easiest way of saving is by automating your savings. Set a particular amount you’ll be saving weekly or monthly.
Then your bank or other service providers will automatically receive your savings.
Some apps help you do that.
The idea is to ensure that even before you think of using money intended for saving, it’s automatically saved.
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The apps that are available to help you do that will still give you access to your money, but it may take a day or more to access your automated savings.
Saving should be a culture and should come naturally. Starting may be hard, but once you get into the habit, it will be a lifestyle.
You’ll see all the amazing things you can do when you save and have a money mindset. Look for ways to also grow your savings as this is what makes billionaires.
Whatever you goal may be, it requires a lot of work, planning, and trying your best. Some days you may not be able to work towards it but, even it’s a small amount, try to save!
How do you save when living paycheck to paycheck?
Let me know, til then–cheers m’deres!
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Nancy Polanco is a freelance journalist, lifestyle content creator, and editor of Whispered Inspirations. She is a proud Mom to Gabby and Michaela and partner and best friend to Darasak. Having worked as part of a health care team for almost a decade, Nancy is happy to be back to her passion. She is a contributor to the Huffington Post, TODAY’s Parents, and an Oprah Magazine Brand Ambassador.