Paycheck Pitfalls: Steps to Build Better Money Habits
If you’re like many people, you know what it’s like to come up short on money a few times throughout the month. Running out of money on a monthly basis can make you feel poor, unprepared and vulnerable.
If you’re familiar with the frustrating feeling associated with scrounging for change just before pay day, then this guide is definitely for you. You’ll learn how to build a better budget, how to use your money after pay day, where to make cuts, and much more.
Millennials Have Better Financial Habits Than Baby Boomers
Detail Your Budget
The first step in building better money habits is building a detailed budget and sticking closely to it. When outlining your expenses, don’t stop at your electric bill or grocery allowance, think a little harder. Account for little things like that morning latte or magazine purchase. Small expenses eventually add up, and is often the reason people watch money slip through their fingers so easily.
Account for each and every single purchase you make regularly and document it. It may take a few weeks to get together a comprehensive list, but be thorough and don’t leave anything out if you can help it.
Always Pay Bills Immediately
As soon as your paycheck is cashed or deposited into your bank account, pay any dues immediately. Don’t fall into the trap of assuming you’ll “get to it later” because this only increases the chances you’ll accidentally start spending that designated money on less essential purchases.
Personal growth mentor, Noah St. John says “you can’t make money from unfinished projects” and recommends you avoid procrastination by setting goals you can accomplish (noahstjohn.com). Find a time during the week you can pay bills and go over your budget. When you make time, you’ll avoid a common pitfall in saving money.
Cook Your Favorite Takeout Meal at Home
If you eat out on a regular basis, you can likely assume it’s contributing to your paycheck pitfalls. There’s nothing wrong with dining out every once in a while, but too much can hurt your finances in a big way. If you find yourself wanting to go out to eat, consider the craving and try cooking the same thing at home. Besides, you can likely whip up a better burger than any fast food restaurant could.
If it’s waiting for cooking to be done that kills the idea, try making meals when you do have time and freezing them for an easy re-heat later. You can stay healthy and avoid spending more each month with this kind of plan.
Always Pay with Cash
Use your plastic sparingly. For most, it’s much harder to let go of money if the transaction is being paid for in cash. It’s a simple psychological trick, but will help you refrain from making many unnecessary purchases in the long run.
Relax on the Bad Habits
You can kill two birds with one stone by neglecting to splurge on bad habits. Not only will you save money, but you’ll also be doing a bit of good for your health.
For example, you could try to cut down on soft drinks or cigarettes. Of course, you don’t have to cut these things completely out of your life, but you’ll notice that even a little bit of moderation will save you quite a bit of money by the end of the month.
Better Money Habits
Better budgeting only takes a little time to maneuver bad habits around to become good ones. Check your budget and make sure you allow for all the purchases you want to make each month. If you stick with good habits you can stretch your paycheck a lot better.
Category: Budget, Family Finances, Financial Planning
