If you budget correctly, your current income should be able to handle additional expenses that may come your way. However, some people still believe that the best way to pay for unexpected bills or a financial crisis is by increasing your total take-home pay. You have an option to work overtime or at a second job. Earning extra money is always an option, but, as with most people, if you make more, you happen to spend more.
So what do you when your extra time only allows you to work a job for one day? You don’t need any magic wand not to let money burn a hole in your pocket. There are some easy tips to stretch your paycheck so that you can afford a few new bills:
Tip #1 Alter Your Budget
Altering your budget is the most important thing you can do while trying to make the most out of your paycheck. Your current budget could be working well for you until a new bill shows up on your list of regular expenses. To have more money left over at the end of the month, you can design a budget by prioritizing your savings and accommodating all the fixed and variable expenses within the remaining amount.
There is no set rule for budgeting, and that’s the best thing about it. You can make adjustments in your budget every time there’s a new expense or change in your income.
Tip #2 Keep Away from Debt
When you don’t have to pay any interest on your installment loan or your purchases, you have surplus funds. However, with all the alluring offers on credit cards, most of us end up buying things we don’t need. So even if you choose to pay the minimum payment for your credit card, you should know that ultimately you’re spending way more in interest than you think you saved on the credit card offer.
It’s better to make a habit of paying with cash. You can try the envelope budgeting system to help you spend less by making all your transactions in cash. On the other hand, if you are repaying any long-term debt, it’s better to plan and get out of it soon. Paying less interest will help you increase your total take-home pay and save more for new bills that are going to be due from next month.
Tip #3 Factor out Bonus
The percentage, frequency, and criteria of bonuses vary from firm to firm. Also, you may not be getting your bonus every month, so it is better not to include it in your budget. By not making your bonus as part of your budget, you’ll have a fair amount of money at the end of every financial year. You could either save the money for your retirement or pay off your debts in full. Also, the bonus money can help you to decrease the principal value of your loan if you are planning to make a big purchase, like a car. By doing this, you may not feel the burden of new debt.
Tip #4 Split and Save
This tip is perfect for those who are single and have just started to earn. Mostly, if you are someone who often goes out with friends, you can save a few dollars on every time you shop or dine together. All you can do is buy things in bulk and split the cost. This way you can get the discount of bulk buying (if any) and won’t have to throw away goods as you couldn’t use them up before they go bad. Hence, splitting your bills can not only save you money but also give you more shelf space.
Tip #5 Check Your Withholdings
Do you see a long list on the deduction side of your paycheck? Though you can claim all those excess deductions made while filing your tax return, your monthly payout is always going to be less. As a solution, you can try to increase the value of your withholding. This will automatically increase the contribution of your employer, and less money will be taken out of your gross monthly salary.
All in all, if you thought you couldn’t manage to accommodate a new bill while living paycheck to paycheck, the above tips could make your life easier, even without going out to search a second job for yourself.
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