Living from Paycheck to Paycheck

by Marcel 20 April 2011

Are you tired of your cycle of financial dependence which includes living from paycheck to paycheck? It is time to end your financial struggle and become a smart money manager. A few changes to your budget and spending can decrease your reliance on payday checks for each new purchase you need to make.

  1. Study your household budget. If you want to end your financial dependence by growing a substantial savings account, initially you must make tough financial choices. Establish a goal for how much you want to put in savings every pay period. This is a goal you must meet in order to decrease your reliance on the next paycheck for paying bills on time.
  2. Make budget cuts. Use budget cuts like eliminating your cable or satellite service or switching to a cheaper plan. You can also switch your cell phone to a cheaper provider. Look for other unnecessary spending such as the lawn service, the pest control service, or the pool cleaning service that helps your house.
  3. Save on household consumption. How many times have you read that keeping your home a little warmer or cooler can save oodles on your electric bill? Small adjustments to electric, gas, and water consumption can decrease your utilities spending and free up more money to save each paycheck.
  4. Smarter grocery shopping. You can buy store brand products and save at least €10 a week on your grocery bill. This is more money that you can deposit in your savings account or save in your piggy bank.

Trimming the waste from your budget gives you multiple ways to grow your personal savings. Practicing smarter consumption gradually decreases your dependence on the next paycheck for buying groceries or paying a bill that will be overdue by payday. You might be surprised how quickly you see results. Good luck with smarter money management!

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Saving 101 – Pay Yourself First

by Marcel 31 March 2011

One of the biggest excuses people give for not saving is that they have no money left at the end of the month. Those would-be savers can do themselves a world of good by turning things around and making their savings into just another bill that must be paid.

This is known as the pay-yourself-first strategy, and it is both simple and effective. With the pay-yourself-first strategy you treat your investments as just another monthly bill. So if you want to put away €50 a month, you write a check to your favorite mutual fund, or transfer the money electronically, at the beginning of each month, before you have a chance to spend the money elsewhere.

You can start this strategy with just a few dollars if you wish. You do not have to cough up $50. Instead you can start with $10, or even $5. The key is to get started and get into the habit of savings. Once this strategy is in place, you will find it much easier than you ever thought to save and invest for the future.

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