Negosentro.com | Living paycheque to paycheque isn’t fun, but it isn’t permanent. It’s possible to get your finances in order and start putting money away in savings.
When you live paycheque to paycheque, it’s not always easy finding savings. But it can be done. Read on to find out how you can break free from a tight budget and start saving more money.
Find Savings in Regular Expenses
Let us know if you’ve heard this one before: if you want to save money, you should stop indulging in your daily Starbucks Frappuccino that costs $7.
This would be a great idea if you stopped by a café everyday to spend nearly $10 on a special beverage. But what good does it do if you never make these purchases in the first place?
If you don’t splurge often, then you’ll need to target fixed, regular expenses for savings.
Here are some ideas:
- Commuting costs: Between gas, parking, and general maintenance, the cost of zooming around the city adds up. You may be able to tighten your transportation expenses by using an app like GasBuddy. It pinpoints the gas station offering the cheapest price of fuel. You can also save even more by joining an app like GoCarpool to find local people willing to split the bill of your daily commute.
- Utility bills: You’re probably paying a fortune to heat your home, keep the lights on, and have running water. Tweak how you use these utilities to save on your bills. Not only will watching your energy use help you budget, but it will also help the environment. Now that’s a win-win.
- Groceries:Eating well doesn’t have to be a luxury. Take a look at some of these recipes for food that delivers on taste, nutrition, and price. Devote some time to creating a meal plan that maximizes flavours without draining your wallet.
Change the way you bank
The biggest commercial banks are household names, so banking with them may seem like the obvious choice. But this decision could be costing you.
Most commercial banks slap expensive fees on daily banking tasks, as well as personal loans and lines of credit. Some charge you as much as $30 every month just so you can keep a basic chequing account open.
You may be able to save hundreds of dollars a year by seeking out banking alternatives, like credit unions. A credit union delivers all the products and services a commercial bank offers but without the costly fees.
Banking with a credit union means you become a member who receives personalized services, local lending options, lower fees, high interest rates on deposits, and annual dividends. To learn more about a credit union differs from banks, click here.
A credit union is a collaborative approach to banking, so they don’t see you as a number. You’re a partner or neighbour, and they want to help you manage your money better.
Keep it up, Even When it’s Hard
There’s no doubt finding savings in your budget when you don’t have a lot of expendable cash is a challenge. But so is living paycheque to paycheque! Keep this in mind whenever you feel discouraged about your finances. Any effort you put into reorganizing the way you budget and bank will help you get out of the red.