Whether you are accustomed to living on one paycheck or you are trying to transition to a single paycheck lifestyle, getting the most out of your money is probably a concern. Whether you have always lived on one paycheck and just want to get more for your money or you’re about to downsize to one paycheck, there are things you can do to make your money better work for you. Here are some smart money moves to make when you are living on one paycheck.
Pay off your credit card debt starting with the highest interest rate first. Some financial experts will tell you to pay off the lowest amount of debt first; this is something you will need to decide for yourself. If your interest rates are high you can always call the credit card companies and ask for lower rates. If you have a good relationship with the credit card company they will most likely lower your interest rate. When you are concentrating on getting your debt paid off, your stress level will start to decrease as the amount you owe decreases because you know you’re on the road to being debt free.
If you are debating quitting your job in order to stay home and raise your family, explore your company’s policy regarding leaves of absence as you may be able to take an extended leave of absence and try out the single income household idea. It may be easier to deal with the idea of a one paycheck household if you still have the safety net of a job to return to, should you decide to do so.
Look at your budget and decide which items are essential to you and which items you can easily eliminate. While this may mean that you cut out shopping sprees or eating out, you will benefit long term. Cutting out non-essential items before moving to one paycheck will also help you realize how much money you will have to work with. Look at borrowing books from the library instead of buying books, renting movies instead of seeing them at the theaters and making healthy meals at home instead of eating out.
Creating a budget when you are moving to one paycheck is a really smart money move. Not only does a good budget relieve stress but it also allows you to see exactly where your money goes. A good budget not only allows you room to put money into a savings account for emergencies, it also gives you enough money to buy what you need. You might even discover some money for fun! Making a budget and sticking to it eliminates guess work and helps every member of your household understand the family’s financial picture.
Another smart money move to make when you live on one paycheck is to shop insurance rates, phone, cable and internet services and maybe even which grocer has the best prices. You can compare rates for any of these services either on the internet or by calling around. Sometimes you will get a great deal; if you don’t, check back with the provider as things change all the time.
Smart money moves when living on one paycheck should include having a savings account of some sort. This will help you in emergencies and give you a better sense of security. Even if you can’t save a lot, some is better than nothing. When your savings account has a good amount of money in it, you may even consider investing it to make even more from your money.
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