Six Ways to Manage That Money Crunch
Are you living paycheck to paycheck? Or maybe you’re just trying to pinch those pennies to save up for a large purchase such as a car or home. Either way, most people can feel a bit of a money crunch each month. The trick is to learn how to manage this feeling. These six tips can help you manage that money crunch and keep your finances in check.
Track Your Expenses
Today, technology has made tracking your budget simple and easy. For example, Mint.com has a great smartphone app that tracks your spending each month to help you recognize patterns. Even if you don’t want to use a smart phone app, don’t be somebody who gets to the end of the month and suddenly wonders where all your money went. Making a budget and tracking your expenses is the best way to detect any areas where you could cut back.
Use Your Kitchen
Why spend money on a meal from a restaurant when you could make a similar meal at home for a fraction of the cost? You can save hundreds each month by buying food from the grocery store instead of the drive-through. In addition, kick the Starbucks habit and brew your own coffee at home to save even more. You’ll be surprised at how much is left in your bank account at the end of the month by just using your kitchen more often.
Cut the Cord
If you are one of the many Americans still spending hundreds each month on cable TV, a great way to save money is to switch to an instant streaming option. Now TV fans have plenty of options to watch their favorite shows. Netflix, Hulu Plus, and Amazon Prime are just a few examples. Even with the cost of internet service, switching could cut your entertainment budget in half. Some people worry they won’t be able to see all their favorite shows, but a device like a Roku brings a number of these services within the same product.
Reduce Your Debt
While carrying your expenses on a credit card can be tempting, it’s important to not carry a balance over from month to month. Interest expenses are a waste of money when you consider how easily they can be avoided. Be sure you to pay off your entire balance each month, not just the minimum balance. By not carrying a balance on your credit card, you could save hundreds in interest expenses over the course of one year.
Pay Down the Smaller Debts First
One method to having more surplus money each month is to pay down your smallest amounts of credit first. Not only does this mean fewer payments to different sources each month, thereby increasing your spending cash (to pay down other debts, right?), but by choosing the smallest bills first, you can feel like you are making headway. Seeing results can help you stay disciplined on a regular basis. Remember, your emotional state when dealing with your debt is virtually as important as your tactics. You can restrict your spending much more easily when you address it with the right psychological approach.
Consider a Personal Loan
If you’ve tried these four tips and are still struggling to make ends meet, consider taking out a personal loan to help you get to the end of the month. Rather than getting a payday loan, you may want to consider applying for personal loans in OKC or in your locale. Try a bank or a credit union to get you the cash you need. Use this only occasionally, though, to keep any interest payments low.
Whether you are trying to stretch your paycheck just a little bit further, or you’re saving for a major financial goal, these six tips can help you get there.
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Category: Financial Education, Financial Planning
