Whatever your pay grade is, you’ve probably experienced being short with cash a few days before payday at some point in your life. Although it’s sometimes inevitable especially when you catch an unforeseen financial blow (which is a reason why you should get insurance, by the way), regularly suffering through petsa de peligro is a habit you should rid yourself with. Start yourself off with a better financial standing with these easy adjustments.
1. Pay yourself first
Some people set aside money for all their expenses, then put what’s left in their savings account. In reality, what you should be doing is the opposite: Pay yourself first before paying everything else. If you want to build your savings, it’s a must to put it at the top of your financial priorities, or else you’ll never be left with anything to set aside.
2. Immediately budget money for necessary expenses
Once you’ve paid yourself, set aside money for your bills right away. If you can do this on the same day that you get your salary, do so. This lessens the chances of you spending money that should have been set aside for something else.
3. Take into consideration sudden purchases or payments
It’s always good to have money for miscellaneous expenses, or just things that you suddenly want to buy that aren’t necessities. These can include food, clothes, books, or even important and sudden cash-outs like medicine or car repair.
4. Don’t be a swipe-aholic
If you can, use cash for small transactions. Credit cards only serve to delay your payment but remember that what you swipe remain debts that gain interest until you clear them. Swiping is best for huge purchases with zero percent installment schemes over a given number of months or years. Small purchases accumulate fast, are easily forgotten, and grow interest like crazy when left unpaid. You wouldn’t want to suddenly be faced with a bill that’s twice the amount of your initial purchase, right.
5. Live within your means
This is probably the most important thing to remember if you wish to stop living from paycheck to paycheck. Living within your means is cutting off excesses you can do without and learning how to appreciate delayed gratification. Trust us: You’ll definitely feel good about yourself when you get to the next payday and still have money left over from your last suweldo.