Millions of Americans struggle to cover big bills on small incomes. Living paycheck to paycheck brings constant financial stress, but it is possible to break the cycle, tackle debt, and regain control, all while building wealth to reach your long-term financial goals. If your bank account is low, but utility bills are high, it may be time to get creative with how you manage your money.
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It takes strategy, discipline and sacrifice to stop living the paycheck cycle, but the path to financial freedom is worth it. Here are 15 money hacks to help stretch your paycheck further.
Start by looking at the recurring payments on all your credit cards and recurring debits from your checking account. Take inventory of all the payments that come out automatically every month. Check your credit report, not just to confront your score, but to see which accounts are in the worst shape.
Now that you’ve examined all this, take a hard look at where your discretionary income is going. That’s what you should have left over after you pay your bills, necessities and taxes. If you can’t pay your bills, you either won’t have a lot of discretionary income — or you are overspending in areas where you need to cut back.
From brewing your coffee at home instead of going to a coffee shop to washing your own car and not eating out, everyone knows the standard personal finance belt-tightening advice. Take it seriously — identify your biggest splurges and stop splurging on them. Or at least splurge less.
Only you can decide if your meditation app — or your call-recording app, your cloud storage, your VPN, your workout app, diet app, music subscription or home security — is absolutely vital. If you’re anything like most people, though, there could be a lot of fat to be trimmed.
By eliminating one or more subscriptions you don’t use or need, you could free up money for multiple bills or dig your way out of debt faster. Another great hack to help you pad your savings account is to cut the cable cord. The trend toward cord-cutting has been well documented, and cord-cutters can save money and find other ways to watch movies or TV.
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Car insurance is another recurring payment that’s easy to forget about. Call your insurance company, go over your plan with an advisor and ask if there’s anywhere you could be saving money, maybe with a higher deductible. Tout your good driving record if you have one, and when you’re finished, shop around.
