Budgeting Your Paychecks

In this time that we are in, everything is getting more expensive. If you are currently living from paycheck to paycheck, everyday living can be trying at times. To eliminate unnecessary stress in your life, consider some tips on budgeting your paychecks.

List Your Expenses

When starting any budget, it is essential to look at your expenses. First, examine what one month of costs typically looks for you. This includes your regular expenses, such as your rent, car payment, or mortgage. Then evaluate what your irregular expenses are, such as groceries, appointments, and other bills. Next, calculate your average in a month for these irregular expenses. Once you add all these expenses together, you can estimate what your monthly expenses are. This number is vital to have at the beginning of your budget process to plan everything around these payments.

Use a Calendar

To have an accurate schedule of your paychecks, make sure you use a calendar. This can be the calendar on your phone or one that you keep in a convenient area of your house. Write down which days you get paid, whether weekly, bi-weekly, or monthly. These days written down can remind you of how much money you have to spend until your next paycheck comes in. This also is a great way to remember when you need to make specific payments.

Examine Essentials and Non-Essentials

If you live from paycheck to paycheck, you know that it is essential to use your money wisely. One way to use your money wisely is to spend it on essentials. Many areas in our life are noncrucial, which we typically overlook. Some everyday non-essential things can include fast food, expensive clothing, numerous memberships or subscriptions, and impulse shopping. If you relate to any of these things, do not worry. Although you may be used to some of these things, there are many practical ways to reduce how much you spend on these things. Try minimizing how often you consume or use these things, and after a while, you can almost entirely cut them out.

Have Financial Goals

Although you may be relying on your paychecks to make a living, it is possible to create financial goals. These can include short-term and long-term goals. Some of these goals may take time to reach, significantly if you are not increasing your income. Yet your goals must match your income and budget. Always remember not to try to have goals that work for other people. Having personalized goals is vital and will overall be what works best for you.

Keep Track

Many people quickly start a budget but lose track of it over time. For a budget to work and be effective, it needs to continue being used. Make sure that you have a place to write down and keep track of your budget. You can use a notepad or an app, which can be accessible on your phone at all times. trying checking in with your budget before and after you get your paycheck. You can create a checklist of things to markdown, such as have you saved any money from your previous paycheck, made your monthly expenses, or bought your weekly groceries.

Living off of your paychecks can be intimidating at times. Yet when you put a budget in place and stick with it, you can certainly enjoy your day to day life to the full.

Sources

-Posner, Christi (2021). How to Live on a Budget With a Paycheque Planner. My Money Coach. Retrieved from https://www.mymoneycoach.ca/blog/live-on-a-budget-with-paycheque-planner.html