Asian couple calculating home budget together with paper bill and laptop in new home at kitchen table
Tanique Parker is an accountant at Traditions Bank
Receiving your paycheck on Friday and not having any extra money on Monday is not a good experience. Between paying the bills, taking care of your home, and making sure you have everything you need, it can be difficult to find ways to save money and not struggle until the next payment, n ‘is this not ? Sadly, this was the norm for some of us for years and years, even before the pandemic. According to a December 2020 CNBC article, 63% of Americans have lived paycheck to paycheck since the onset of COVID-19. (Did you link to this article?) For many, their income is just enough to cover their bills and necessities until the next paycheck arrives. Developing healthy savings habits can help you avoid unnecessary spending and put you on the path to financial success.
Ready to break this cycle? Here are some steps you can take:
- Create a budget: because without one, it’s pretty easy to live off a paycheck because you don’t know where all your money is going. The first step in creating a budget is to total your regular income and subtract your expenses. This will show you places where you can cut spending so you can start saving! Consider using an online budgeting app that connects to your bank account so you can see exactly how you’re spending your money.
- Prioritize your expenses: Focus on the things you need to survive. (Food, shelter, utilities, clothing, etc.) Once these are covered, then address your other expenses or put the extra money into savings.
- Limit impulse buying: Save for unforeseen expenses, as they tend to take a large chunk of your paycheck. Try not to get caught up in the moment and give in to temptation. Learn to plan!
- Work on debt elimination: You may feel like you can never move forward because there is always debt to pay off. Eliminate as much new debt as possible while paying off what you owe.
- Build a safety net: It may seem impossible to save money when you live from paycheck to paycheck, but it will help you in the future. Creating a savings plan will not happen overnight, but it is essential to start now; every little bit counts, and you’ll be relieved to know that you have that safety net or that cash every time you need it in the future.
- Reduce overspending: Look for expenses that you can eliminate, such as unused subscriptions or subscriptions. Consider downgrading your cable or Internet plan.
- Create another source of income: If this works for you and your family, consider creating another source of income. Find something you’re good at and enjoy doing and turn it into a side activity!
- Find an accountability partner: It might sound strange, but having someone who can keep you on track is essential to improving your life financially.
After implementing these steps, your overall stress level will decrease and you will feel more financially secure.
Traditions Bank is your partner in financial success
From opening your first checking account to saving for the future, we’re here to help you on your way. Contact a member of our personal banking team today.
York Traditions Bank published this content on 01 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 01 October 2021 13:51:05 UTC.