5 Steps To Building A Paycheck To Paycheck Budget
February 9, 2021 | June Mckaig
Millions of people struggle financially; so you're not alone if you're broke by Friday. The fact that you live paycheck to paycheck isn't even a surprise anymore. In fact, nearly 53% of the American population reports having zero money left after paying for their living expenses. Many of them have to come up with a paycheck to paycheck budget to cope with it all.
In turn, people have been developing creative budgeting tactics since the dawn of the Federal Reserve. It's no wonder, then, that folks now depend on such measures to make ends meet. Whether you're broke or not, the fact of the matter remains, it's smart to get organized when it comes to your money.
For people like us, that usually means drafting up a paycheck to paycheck budget. Whether you use fast auto loans in Arizona or some other method, here are some tips on creating the right paycheck to paycheck budget.
What Is A Paycheck To Paycheck Budget?
This type of budget allows for all living expenses to be covered while still making room for other, less vital things. It's a more frugal way of finding a balance between low incomes and high prices. Over time, this type of budgeting can create a hefty savings account or help someone get out of debt despite not making much money.
Why Frugal Budgeting Matters
People who are more responsible with their earnings often enjoy a higher quality of life. They're less stressed out and better equipped to handle unexpected ups and downs. Those who create and follow a strict spending schedule can integrate more flexibility into their everyday lives. This can result in lowered stress levels, optimized sleep cycles, and a decreased risk of heart disease.
5 Ways To Build A Better Paycheck To Paycheck Budget
Because your health and well-being depend on financial security, it's important to take steps toward smarter spending. Creating a paycheck to paycheck budget isn't hard either, and that's because it's so common. Here are how the most successful spenders do it, step-by-step.
1. Figure Out How Much You Make Each Period
Take a look at your most recent paystubs. That's where you'll find all the information required for this exercise. Try to find the figure labeled "gross income." Now, compare that to the figure labeled "YTD" and note the difference. The difference represents how much money you take home every pay period. Write that number down for later.
2. Write Due Dates On A Calendar
Find a calendar that's easy and convenient to use. On it, jot down when all of your bills are due. Try to write the due date on the day before it's actually supposed to be paid. That way, you can avoid late fees and inconvenient bank delays. Then, keep that calendar somewhere that's out in the open, so you'll refer to it all the time.
3. Set Aside Cash For Various Expenses
When you get paid, don't look at the numbers and start thinking of all the different things you could buy. Instead, begin subtracting your expenses from the top. Take enough money out to cover the bills on your calendar, and then put back the rest of your cash for later. It may only be a few dollars, but at least it's something to work with.
4. Make A Plan For The Surplus
"Something to work with" means putting your money to work for you. It's no easy task, but it can be done with the right tactics. Do the same thing you did with your bills when it comes to your surplus money. But instead of reserving cash for expenses, set short-term spending goals and work toward saving up for them over time.
5. Get A Fast Title Loan To Handle Emergencies
No matter how much you follow the top four steps and are diligent in creating your paycheck to paycheck budget, emergencies still happen unexpectedly. And many of these emergencies are almost impossible to handle on your own. When that happens, you can turn to fast title loans for help. Title loans are loans you get when you put up your vehicle’s title as collateral.
Getting one of these loans in Arizona is simple. All you have to do to begin is fill out our online form. Once you are finished with the form, you will receive a phone call from one of our loan representatives. During this call, you can give the loan rep a location to meet you so you won’t have to come into a title loan near you.
Either way, you choose, you will have to have your driver’s license or ID, your lien-free title, and your vehicle for inspection. The loan rep will look at all of your items and determine if you qualify for approval. If you are approved, you will either get the cash the same day or the very next bank business day.
Follow these five easy steps, and you'll be on your way to creating a great paycheck to paycheck budget to have a more secure financial future. Ignore them, and you'll be living paycheck to paycheck for the rest of your life. There's a secret that many people don't know. Living comfortably doesn't hinge on what you make. Instead, it hinges on what you spend. So, use tools like spreadsheets, calendars, and fast title loans to avoid expensive debts and dents on your credit report.