It is a tough situation to be in when you feel you are trying your best and still cannot stretch your finances till the next paycheck. You are left with mere pounds and decisions like whether you should use it for groceries or fuel.
Even when your paycheck does come, you end up using most of it to cover for any borrowing you might have done to survive before it was credited. This may seem like a vicious circle with no end in sight, and you might have also fallen into a debt trap as you tried bravely to get out of it.
We understand how frustrating it can be, and reading on the internet about how you should ‘just save more’ or ‘not have that one cup of coffee’ is not really helping you fix anything.
We understand that, and hence, in this article, we will share some dos and don’ts you can follow to just find some extra pounds at the end of the day.
Say No to Payday Loans
We know it is tempting to get a payday loan that you can repay once your next paycheck comes. Payday loans with their very high APRs (Annual Percentage Rates) are not a sound financial option because you end up paying a lot more than you borrowed from a single paycheck. Hence, you find yourself needing another one before the next paycheck comes in.
We would also advise that you stop borrowing if you have been so far and look at other options, like extended credit on credit cards. Only in case of great emergencies—and we mean great ones like your home becoming unlivable or your car breaking down—would we advise considering ethical loans by Salad Money. They have lower APRs than most payday loans, but they are still high, and you can pay them back in comfortable installments rather than paying the entire amount from your next paycheck.
Consider Government Help
Your local council should be the first people you contact when you are consistently failing to make your ends meet. You can find out if there is some aid that the government can provide or give you an easier payment plan for your taxes. You will find that services like Citizens’ Advice will definitely help you see how you can make your money last longer.
If you are over 60 and nearing retirement without a proper financial plan, you don’t have to worry. You can approach Age UK, where they will help you understand if you are eligible for any welfare services. You might also be able to receive help with your rent by using services like Universal Credit or Housing Benefit. Do a quick search or contact your local council directly before you decide to take any kind of loan.
Keep a Daily Budget Tracker
Suppose you have £300 left after paying off the essentials and you have 30 days until your next paycheck. You should divide that money equally across the month. That means your daily budget shouldn’t exceed £10. If on a particular day you spend less than your budget, you can carry the remaining for your budget the next day, and if you happen to exceed your budget, you need to spend less the following day to make up for it.
This method is not a perfect way to keep track of your expenses, but it makes you a little mindful of where and how much of your money is going. We have a tendency to overspend a little in our payday week and struggle for the final week before the paycheck. If you mindfully spend and try staying within your budget from the first week, you might have a little more than usual saved up at the end of the month.
Decide Between Your Needs and Wants
We understand that buying groceries is your basic need, but buying them from Waitrose becomes a want. You can look for budget-friendly options like Aldi, Lidl or even a local ethnic store. When you try to apply that thought to every expense you make, you will be able to make a significant dent in your bills.
Instead of using all the streaming services available and paying for subscriptions each month. Put these services on a rotational basis, where you consume content from one service for a single month and then move on to the next. Ask your colleagues if they would like to carpool to work on a rotational basis; that will also help you save fuel every week. When you only spend on your needs and eliminate the wants, you will be able to stretch your money for longer and maybe even save some.
Final Thoughts
We know that you do not enjoy being in situations where you are struggling paycheck to paycheck. It is a tough circle to get out of, and it would require a lot more effort and mindful spending from your end.
In this article, we discussed ways to stretch your paycheck for as long as possible, making some temporary sacrifices for a much financially healthier tomorrow. Just remember that you need to address it one day at a time and find the solutions that work for you.
