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How to Make your Paycheck Last When You Are Paid Once a Month

11.03.2022 by Harry //

The main financial challenge for many people who are paid once a month is making their paycheck last the entire month and covering their expenses.

This can be tough, especially if you have debt or other financial obligations. However, there are some things that you can do to make your paycheck last the entire month. 

  • Make a budget
  • Save up an emergency fund 
  • Automate your savings 
  • Cut back on discretionary spending 

Making your paycheck last the entire month can be challenging, but it is possible if you are strategic.

Make a budget

The first step in creating a budget is knowing your income and expenses. To do this, track your spending for one month so that you have an accurate picture of where your money is going. Then, include everything from rent or mortgage payments to smaller items like coffee or impulse purchases. Once you have this information, you can begin creating your budget.

Tip: go through your past month’s bank statement to get an honest picture of what you spend your money on.

Once you know your income and expenses, you can start allocating your income to different spending categories. There is no one-size-fits-all solution here. The categories and percentages will vary based on your circumstances. However, some common categories include housing, transportation, food, entertainment, and savings. 

Once you have created your budget, it is essential to stick to it as closely as possible. Try setting up automatic transfers to ensure you always meet your financial goals.

And if you find yourself dipping into other categories more often than you would like, take a closer look at where your money is going and adjust accordingly.

Save up an emergency fund 

One of the main reasons why you need an emergency fund is to avoid going into debt. Unexpected expenses can be a financial strain, and if you do not have the money to cover them, you may be tempted to put them on a credit card.

This can lead to credit card debt, which can be difficult and expensive to pay off. By having an emergency fund, you can cover unexpected expenses without going into debt.

https://njaes.rutgers.edu/sshw/message/message.php?p=Finance&m=263

Another reason you need an emergency fund is that it can help weather financial storms. If you lose your job or experience a decreased income, your emergency fund can help you make ends meet until you get back on your feet. An emergency fund gives you peace of mind knowing that you have a cushion in tough times. 

Ideally, you should save up enough money to cover six months of living expenses. This may seem like a lot, but it is essential to have a cushion for unforeseen circumstances. If you cannot save that much money immediately, do not worry! Instead, start with what you can and gradually increase your savings over time. 

Automate your savings 

When it comes to personal finance, one of the best pieces of advice is to “pay yourself first.” This means that before you spend any money on bills, food, or fun, you should put money into savings. The idea is that by making saving automatic, it becomes a priority, and you’re less likely to spend the money elsewhere. 

Another reason why automating your savings is a good idea is because it can help you avoid costly overdraft fees. Overdraft fees happen when you try to spend more money than you have in your account and typically cost around $35 each time they occur.

If you have an automated savings plan in place, you can transfer funds from your savings account to cover any unexpected expenses and avoid paying overdraft fees. 

Now that we have gone over why automating your savings is a good idea, let us discuss how to do it. If you have a steady paycheck coming in from an employer, the easiest way to automate your savings is to set up a direct deposit from your checking account into your savings account. This can usually be done through your employer’s payroll system. 

If you do not have a steady income or want more control over how much money goes into savings each month, you can manually set up recurring transfers from your checking account. Most banks allow customers to set up recurring transfers online or through their mobile app.

All you need is the name and routing number of the bank to which you want the money transferred. Once the transfers are set up, they will happen automatically, typically once per week or once per month. 

Cut back on discretionary spending 

If you find that you are struggling to make ends meet each month, cutting back on discretionary spending can be a helpful way to make your paycheck last longer. Discretionary spending includes things like eating out, shopping, and entertainment. By cutting back on these expenses, you can free up more money each month to put towards other financial goals like paying off debt or building up your savings account. 

The first step to cutting back on your spending is to track where your money is going. This means keeping a budget and understanding where your money is spent each month. Once you understand where your money is going, it will be easier to identify areas where you can cut back.

There are often cheaper alternatives to the things we want or need. For example, instead of going out to eat every week, try cooking at home more often.

Instead of seeing a movie in the theater every weekend, wait for it to come out on DVD or streaming service. There are usually cheaper ways to do the things we enjoy; we need to take the time to find them.

Conclusion

Making a budget is one of the most critical steps to improving financial health. A budget helps you to track your income and expenses, so you can see where your money is going. It also allows you to set spending priorities and make informed decisions about the best use of your resources.

One of the key components of a successful budget is an emergency fund. You set aside money for unexpected expenses, such as medical bills or car repairs. An emergency fund gives you peace of mind knowing that you have a cushion to fall back on if something goes wrong.

Another essential element of a budget is automating your savings. This means setting up automatic transfers from your checking account into a savings or investment account. This will help you to save money consistently, even when you do not feel like it.

Finally, cutting back on discretionary spending can free up funds for more important financial goals. Take a close look at your spending habits and see where you can cut back, such as eating out less or buying fewer clothes. Small changes in your spending habits can make a big difference in your financial picture.

Image Credit: [Getty Images Pro]

Categories // Money Management

The Top 5 Apps That Will Negotiate Lower Bills For You

08.24.2022 by Harry //

We all want lower bills. Luckily, there is an app for that. Unfortunately, many people do not have time to figure out how to reduce their monthly bills. However, there are mobile apps out there that can help you negotiate and slash your bills each month.

Discover these popular services that can help you avoid overdraft fees and save you a lot of money on cable, subscriptions, memberships, and insurance.

Cutting expenses can take a lot of time, even with a budget. Whether you are financially secure or living paycheck to paycheck, it is wise to save money by avoiding overpayment.

The good news is that these typically free apps negotiate better rates with creditors and providers, cancel unused subscriptions, automate savings that can score discounted services, and leave more money in the bank.

1. Truebill

One of the top ways to automatically reduce your bills is to try out Truebill. This service lowers bills by canceling unwanted subscriptions and managing your spending. Truebill’s website says this service has saved consumers $100 million.

Here is how it works. When using Truebill, the platform syncs with your bank accounts and credit card to observe your monthly bills. You can also select bills that are no longer in use or subscriptions you do not want anymore. With all your bills in one place, this makes it easy for the system to monitor when your automatic payments come due.

Even better, if you live in an area with regulated energy and experience an internet or cable outage, Truebill can ask the company to apply a credit to your account. The platform will determine the lowest rates available if you live in a deregulated area.  

The platform offers users a big bonus because it allows them to upload their recurrent bills. Then, Truebill will negotiate directly with service providers and creditors to take the hassle off your hands and get you the best deal.

  • That is not all. Truebill gives you various tools to assist with budgeting, such as generating expense reports to track where your money is going and automating savings according to your financial goals.
  • Truebill has a free app for Apple and Android and a Premium service feature. Premium memberships cost around $3 to $12 per month, totaling up to $36 to $48 annually.

You commit to giving Truebill 40% of the savings they get for you. The platform will also provide additional tools, such as subscription canceling, bill negotiation, budgeting features, Smart Savings Plan, and concierge services to streamline your financial life.

2. Trim

Like Truebill, Trim manages your bills to help you save the most money.

For example, Trim cuts the fat from your monthly expenses by checking regular charges for any unwanted services you would prefer to cancel. It can also monitor your credit card and bank account transactions to see where you’re losing money.

Trim dazzles users with its ability to negotiate your phone, internet, and cable bills with your providers, saving you up to a staggering 30% on bills you would pay anyway. Remember that Trim will deduct 33% from whatever amount they save. So if you snag $100 in savings per year on your phone bill, the platform will take $33, while you get to keep $67.

With Trim Simple Savings, Trim helps you meet your savings goals by stashing cash away every week to meet your financial goals.

Not only is Trim’s service free of charge, unless you select the Premium option for $99 per year, but Trim lets you earn a 4% annual reward for the first $2,000 you save with them. You will earn around .001% interest on any additional savings.

After that, you gain .001% interest on anything saved over and above that amount.

3. Billfixers

This free app saves you money by cutting down on multiple expenses, including phone, internet, cable, satellite radio, satellite TV, home security, and small business service bills.

If Billfixers saves you money, they will deduct 50% of the annual savings total that they net you by charging your bank, credit card, or PayPal account for a portion each month.

Since Billfixers is free, it does not come with automated savings or subscription cancellation features. However, the good news is that you won’t have to worry about negotiating your recurrent bills anymore.  

4. Billshark

This popular money management platform helps keep more dollars in your pocket by getting you a better deal on your cell, cable, satellite TV, or home security system bills. According to their website, Billshark has a 90% success rate in getting creditors and service providers to drop their prices.

Kevin O’Leary from Shark Tank also recommends, like BillShark, negotiating all your regular bills.

Similar to Truebill, you can upload your bills to the app. That way, Billshark will run your potential savings through their system and then contact your provider to get your bill reduced. They also cancel unwanted subscriptions for a $9 fee.

While the app is free to sign up or create an online account, Billshark takes 40% of any savings from negotiating your bills.

5. Harvest

Harvest helps bring your savings home by protecting you from hefty overdrafts or bank fees. That is because Harvest monitors your overall financial picture and asks for refunds on fees for you. If they save you money, the app keeps 25% and leaves the other 75% in your account.

The platform also helps you review and monitor your regular spending. If there are any unnecessary payments that you want to cancel, Harvest will notify you.

https://www.cnet.com/home/energy-and-utilities/7-simple-ways-to-lower-your-utility-bills-this-summer/

Overall, this tool helps you get refunds and gives you saving and spending tools that can help your hard work of budgeting and saving pay off.

Final Thoughts

These apps make it simple and easy to reduce regular monthly bills. Also, some of the apps offer paid services that give you more options for negotiating.

While you might save even more money negotiating directly with your service providers or credit card companies, these outside tools can automate the job for you.

If you cannot negotiate these money-saving measures on your own or prefer to avoid bill negotiation situations, these apps are a solution to the problem that can help you save hundreds or thousands of dollars on your bills every year.

Image credit: [Grki]

Categories // Money Management, Reviews

10 Ways To Keep Your Bills from Exceeding Your Income

05.25.2022 by Harry //

Bills and paying them are a natural part of life now. What is worrisome is when your bills start exceeding your income. You can end up in a hole due to financial choices or circumstances outside your control. Or you could lose your job.

There could be an emergency expense. You could experience lifestyle creep, where your expensive tastes start to exceed your income.

Want to stop living paycheck to paycheck?

Here are 10 ways to be more aware of your bills, how to lower them, and how to gain more money.

1. Assess and Break Down Your Finances

When you are trying to keep your bills from exceeding your income, the first thing to do is sit down and take stock of your financial situation.

  • Examine your net worth. Subtract your debt from your assets to get a good idea of where you stand. Then, figure out your cash flow.
  • This means determining how much money you have coming in each month. Then, compare how much you have going out in bills each month.
  • Once you have figured out how much money you have coming in versus how much money you have going out, breaking these big numbers into different categories can help you control your spending.

For instance, determine how much you spend on food, gas, utilities, rent or mortgage payments, credit card debt, clothing, student loans, car notes, personal loans, insurance, personal care, vacations, and entertainment.

2. Write Down a Budget

It is hard to keep track of your financial health if you are going by memory.

One of the best ways to visualize your spending and saving is to have an online app or physical planner where you write down how you will spend your money.

If you want to increase your spending, you can commit to avoiding personal impulse buying by putting a miscellaneous spending category on the budget. For example, you can buy clothing or tools out of this budgeted section without guilt or overspending if your other expenses are covered.

3. Slash Discretionary Spending

It is easy to go out to eat every week or get caught up in an impulsive Amazon spending habit. If you do not need it to live (rent, mortgage, food, or loans), then cut it out. If you have credit card debt, this is a contractual obligation that you need to pay.

Taking control of your financial wellbeing and reining in your bills requires determination. No excuses. This means that you may want to cook at home when you do not feel like it. Cutting out the fat can mean downsizing, cutting out fancy vacations, or canceling extra subscriptions.

Although it is hard to cut discretionary spending, taking this step is enough for most people to get their budget back on track. Even though it can hurt, cutting out unnecessary expenditures can put more money in the bank and help you sleep better at night. 

4. Prioritize Your Bills

Sometimes, trimming the fat from your expenses is enough to keep your head above water.

If you are trying to maximize your savings, you need to organize your debts. This can mean making hard decisions about which bills to pay first.

  • First, look over your secured debts. These are things like your car loan or mortgage. If you fail to pay these bills, you could lose valuable assets like your house or vehicle.
  • Next, make sure you budget enough to pay for your utilities and insurance each month. You do not want to drive uninsured or have your power cut off.

https://www.wisebread.com/6-steps-to-take-when-you-have-more-bills-than-income

  • Finally, review your unsecured credit card debt. While you want to pay these bills on time to avoid credit issues, you might need to put these payments on the back burner if you cannot keep up with your secured bills.

Keep track of your prioritized bills by using a good spreadsheet. When you have money left after paying essential bills, put that money towards paying down credit card debt. You can also carry forward any savings to your next pay period.  

5. Set Aside Money in Separate Accounts

As you create your budget, put aside money for recurrent bills each month. It helps accumulate cash to pay large, annual, or expected bills in a separate account.

In addition, putting this money into a different account will help keep you from siphoning off money that you need for upcoming bills.

6. Centralize Your Bills

Are you always stacking bills on tables or stuffing them in drawers? It is easy to overlook bills and skip due dates this way.  

One good method to ensure that you do not miss any bills is to organize them in a central spot.  

Organizing your bills all in one place can be as simple as buying a basic letter carrier box. Hang it up and pigeonhole your bills in it when they arrive. You can stick each envelope in a numbered slot.

Putting the due date even a day earlier than the bill’s actual due date can help you pay bills on time.

https://www.youtube.com/watch?v=Py3rkSwsbyw

7. Pare Down Essentials

If you are desperate to escape living paycheck to paycheck and restore equilibrium to your monthly balance, there are extra things that you can do to tighten your belt.

Tweaking your lifestyle at home can help you save some extra money each month.

While you do not need to shiver in the cold darkness, you could reduce your cooling or heating costs. Consider turning up the thermostat when you leave for work in the summer.

Then, you can turn it back down when you come home to feel comfortable. In addition, you can cut down on your utility bill by not blasting cold air on high while you’re not home.

The same thing applies to heating costs. So, grab a sweater or an extra blanket and get cozy.

Even if it is not your favorite way to live, for now, things like reducing your power bill by turning off lights, doing laundry on a cold cycle, taking shorter or cooler showers, and switching off ceiling fans if you are away can all help keep your bills from exceeding your income.  

You can also get your family involved in saving money together by watching TV together in the same room instead of having separate TVs in each room.

See if you can live with basic cable or a streaming service option instead of the more expensive digital TV.

8. Pack a Lunch

One of the fastest ways to keep down bills is by cooking at home. Instead of grabbing lunch on the go or ordering takeout, buy meat, vegetables, fruits, and whole grains. Make your own.

Meal planning can save you money every day. However, you can also create healthier options. For example, take your lunch to the park or create a fun dinner date to spice up an everyday lunch.

You can also avoid spending too much on spontaneous dining with friends and family by avoiding going out at mealtimes. 

If you do not know how to meal prep or want some fresh recipe ideas, many cooking tutorials and tasty meal ideas are available online.

9. Get a Good Deal from Your Billing Company

Save even when you’re paying the bills by asking for options. If you have a good record with the company, their representatives are more likely to work with you if you have fallen on hard times.

Communication is everything.

For example, if you need to push off a bill this month, ask to switch your billing date. Some companies may let you set up a payment plan instead of paying in full. You might even be able to cancel extra features that you do not need but might end up paying for if you don’t ask.

10. Pick Up Extra Work

There is only so much fat that you can trim when it comes down to it.

Sometimes, balancing your bills and income means you might need to start a side hustle or pick up an extra job. Even if you do not plan to have a food service, retail, or hospitality career, seasonal, temp, or part-time work can help pay the bills.

Keep in mind that saving money can put you in a better financial situation for the future. However, just because you might have to make radical changes now doesn’t mean this will last forever.

Image credit: [Aajan]

Categories // Debt, General, Money Management

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Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

Popular Posts

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Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

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