The basics tools for living on one paycheck are easy to master as demonstrated by the millions around the world who live well on a single paycheck, regardless of their marital status. They include creating a budget, reviewing your expenses, keeping track of your money, modifying habits and eliminating needless expenditures. Everyone can benefit from a review of the basics of living on a single paycheck.
Living in a single income household should begin with the most basic of steps: reviewing your monthly expenses. In order to create a simple monthly budget, first multiply your paycheck by 2, assuming you’re paid twice each month. Secondly, write down each of your expenses, including your rent or mortgage payment, car payment, money spent on gas and groceries, to name just a few nearly universal items. Once you’ve laid out your income and expenses, you should have an excellent picture of where you spend your money and where you can cut extra expenses, if need be.
The basics of living on one paycheck may also include reducing or deleting unnecessary items, some of which may in fact be considered frivolous, from your budget to save precious funds. While you’re looking at your monthly budget, take the opportunity to scrutinize where you spend your hard-earned money. Are there non-essentials you can cut? Cutting out non-essential items will leave you with extra money to pay down debt, save for an emergency or use where you see fit.
Dining out is a common non-essential item you might consider cutting from or reducing among your monthly expenses, as it can add up quickly if you dine out often, especially if you take your family. Another great, basic expense that you can likely trim when you’re relying on one paycheck is groceries: make a list and buy only off of it then cook your own meals. You could even create a weekly meal plan or make meals ahead of time and freeze for use throughout the week or month. Cooking your own meals is healthier for you and it will save you money, too.
Another basic tenant of living on one paycheck requires a review of your social activities and expenses. Are you doing the things that bring you joy and, if you are, could you do them in a more cost-effective way? For example, if you love to garden, you can create a small container garden for next to nothing or you might scratch your gardening itch by volunteering to take care of the landscaping in your neighborhood. Regarding leisure expenses, examine the cable package you pay for and which channels you actually watch. Could you get by with a less expensive cable package or could you do without entirely? Another leisure expense you might be able to modify or cut out altogether is your membership to that movie, book or cooking club. Are you paying monthly fees for something you’re not using? Does your membership require a minimum annual purchase which you can’t afford on your pared down budget? Examine whether you get what you’re paying for and whether or not it’s worth it; you’ll likely discover you can live without these club memberships and save yourself some money in the process.
Living on one paycheck may seem like it requires you to assume a hermit’s existence and cut the fun out of your life but this is not necessary. You might take up reading instead of watching television or maybe grab a $1 DVD from your local grocery store’s rental kiosk, if they have one, in lieu of going to the movies. Use leaner living as an excuse to cook for yourself and your family, if applicable, because not only is it less expensive than eating out, it’s also healthier.
Parenting viewpoints from parents in the trenches, because parenting doesn’t come with a manual. In addition to