High inflation rates have hit almost everything this summer—and it does not look like they will come down anytime soon. Most people’s income has not kept pace with it, and it has become necessary for many people to try and make their dollar go further.
CNBC reports that 63 percent of Americans are living paycheck to paycheck, which has increased from 57 percent one year ago. It means that many Americans are currently struggling to make ends meet.
Here are some ways to stretch your dollar and ease your life living paycheck to paycheck.
Know Where Your Money Is Going Now
Making your dollar do more requires knowing where your money is going now. Write down all of your expenses for a month and see where the cash is going.Don’t forget to write down even the little things. It might include specialty coffees, eating lunch out at work, buying fast foods, snacks, and more. Remember the money you spent on parking, car washes, and more.
Create a Budget
Categorize your monthly expenditures and set limits on each according to your monthly income. Determine your priorities: food and electricity are more important than music, streaming, and computer games. Continue to keep records of your spending and consult your budget often to remember your limits. When you reach the limit in a particular category, stop spending on those things until your next payday. A budget is an essential tool to help you develop better money management.Eliminate the Unnecessary
Chances are good that some of your purchases are for some things you can do without. Find those expenditures, eliminate them from your budget, and use that money toward more important things. You might also want to sell items of value you are not using anymore.Get a Cheaper Car and Insurance
If you are driving an expensive car, you can save money on car payments and car insurance by getting a cheaper one. You probably do not need an expensive car, and it will give you less stress when you know you can handle the payments without worrying about it. Before buying another one, talk to your insurance agent to learn how much less your payments will be.Avoid Using Credit Cards
Although credit cards are easy to use, they can cause financial problems if you use them too often. Remember that you will have to pay interest on that debt once the introductory period is over—and it could keep you in debt for a long time.Use Cash Only
You can prevent yourself from using credit cards if you only use cash. Do not carry more cash with you than what you need to spend when you go to the store. It may be hard to do at first, but it will help prevent overspending—especially if you have a list.Using an envelope system works for many people. When you get paid, divide your cash into envelopes—using one envelope for each budget category. When the money in one envelope is gone, do not buy anything else in that category until the next paycheck.
Do Not Get a Payday Loan
Payday loans may seem like a quick solution, but they can keep you in debt while you struggle to pay them off. The interest rates are high, and you could end up paying twice the loan value. They can also become habit-forming.Save on Grocery Spending
Kyle Taylor, the founder of ThePennyHoarder, says that you can stack discounts to save more money when you shop for groceries. She mentions visiting sites such as Raise, where you can get discounted gift cards for about 25 percent less. Combine these discounts with store coupons, Ibotta, to save even more money.Cook Meals at Home
Cooking at home will save you a considerable amount of money if you are used to eating fast food. You can add rice, pasta, or beans to many dishes to help stretch your food. Make a menu for the week (or two). Before you go shopping, create a list and stick to it when you go to the store—it should save you money.Pay Off Your Credit Cards
Keeping balances on your credit cards means paying interest on items you have already purchased. It also means that any price reduction you had when you bought the item on sale has been lost because of interest. Reduce your credit card debt quickly, and you will have more money each month—if you avoid using them and charging more.Invest Each Month
When you get your budget under control and practice these tips to save some money, invest the savings. Using compounding interest on even what may seem like small amounts each month can turn into a much larger sum over several years. It could give you money to use in retirement, but you should start saving something each month as soon as possible.Tony Robbins, on Money.USNews, says that cutting your spending does not have to mean less fun. Instead of going to a restaurant to have dinner with friends, invite them to your house, split the cost, and order pizzas. Then save or invest the difference. Saving and investing $40 per week can get you more than $550,000 over 40 years.
Get a Side Job
If you find that you are still short on cash, or just want to eliminate some bills faster, consider getting a side job temporarily. There are many choices available, so you should be able to find one or two that can suit your situation. Also, you can do many of them from home—with little or no extra experience or equipment. Choices can include babysitting, dog-walking, delivering food, driving for Uber or Lyft, selling products on Etsy, becoming a freelance writer or editor (Upwork), helping people with tasks (TaskRabbit or Handy, and much more.Even though there is high inflation now, realize that it may not go away anytime soon. Prevent getting into debt by practicing the above tips and learn how to stretch your dollar now to develop financial stability to protect your finances.
The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
