After I posted my Guideto Being on a Budget, a lot of people asked how to stop living paycheck topaycheck. So I did a post about thatwhich you can find here.
Still the most common question I continue to get was “What if my incomeisn’t enough to cover my monthly expenses?”
That’s a great question and a very common problem. In fact, I used to be that way as well and Ican tell you the ways I changed it. Itis certainly possible for most people as long as you stay dedicated anddisciplined. Remember, it’s worth it!
So here are 5 methods I used. I hope these help answer that question.
1. Cash Envelope System
You won’t spend more than what you planned to if you plan foreverything.
I can’t stress enough how crucial an envelopesystem is. Not only does it helpyou see where your money goes but when you set it up, you need to write downwhat type of expenses you generally have.Since most people don’t even think of random things like a caremergency, or a random doctor’s appointment (copay + medicine cost), it cansometimes throw off your month and you end up spending more than you planfor. Even if I don’t have a car expense one month,I still put money aside from my paycheck, so that if I have one the next month there’salready money there. For instance my muffler rusted out on my car this monthand guess what, I didn’t even flinch because I had more than enough o cover itin my envelope system under the car category.
Think of it as a mini savings fund.It technically is a savings fund, so when I think of how much money isin my savings I always remind myself there’s even more if I include my carfund, pet emergency fund etc. Refer tomy link on my envelope system to set up your own! I even have a stress free Christmas because Iput money aside all year, as detailed here.
2. Cut Costs Everywhere + In Every Way
I did a post about 10things I splurge on and 10 things I save on and I can’t tell you how muchit makes a difference with my finances. Try shopping at the dollar store for cleaningsupplies or buying generic brands as often as possible. Cut coupons and follow sales so that you canget double savings when you match coupons up with existing deals.
And remember every little thing adds up, even your $5 lunch atwork. I pack my lunch, I make my owncoffee at home, I buy my own drinks and bring them in, and I drive a car that’spaid off. Even though it’s nice to get anew car, I’d rather save the money each month than have another car payment.
3. Make Extra Money Each Month I did a post about the 10weird ways I save money and as silly as it sounds, every dollar addsup. I getpaid to take online surveys (all ofmy sites I use are legit and I’ve done them for well over 5 years!) and in turnI get paypal cash, gift cards for stores and eating out, Itunes, Amazon,etc. I make $50 -$100 a month from thatand while some people think it’s not enough or may not be worth it… that’s amonth of gas for me! I also sell things on ebay. Itmay take some time but once you start doing it you get more comfortable withusing ebay and you’ll be very pleased with the income you make! 4. Buy and Accumulate Less Stuff I embracedminimalism in many aspects of my life and it’s amazing how free I feelfinancially. I don’t spend money onDVDs and books because I cut back on my collection. I use Apple TV to rent, and I own a Kindle soI don’t have to accumulate physical copies of books. It also has me conditioned to stop and thinkbefore I purchase anything. Just becausesomething looks amazing on the shelf, I ask myself to I really need that? It’sjust going to take up space and I have enough home décor as it is for now. 5. Live Well Below Your Means I don’t get manicures and pedicures.Instead, I do them myself. I ask for gift certificates for them as agift however so I still get to enjoy them.I go to a very affordable hair salon and I take care of my hair inbetween cuts so I can stretch every last dollar I have. Instead of going to the gym, I workout at home to DVDs. I moved back home with my parents which isn’tso glamorous but it saves me money right now. I wash my hair every other day which saves on shampoo and conditionercosts and I only do one load of laundry a week. Did you know that Ihave a financial book available for purchase? Be sure to join my Facebook group, Fixing Your Finances, to help you with your finance journey along the way.
Another thing I never do anymore is rush to thestore to buy an outfit for a night out. I use what I own already, and I createnew outfits by mixing and matching. Ialso thrift shop if I absolutely must go out.
I truly hope some of these methods can answer your questions but if you still have some, please leave them in a comment below!
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