It is a familiar problem for many people: 2-3 days before the salary, the money runs out. Sometimes the income slightly increases, but the scenario remains the same. A couple of days before the next payday, your card or wallet is empty, and it’s unclear how to change the situation.
It’s not about the size of your salary, it’s about how you spend it. Sometimes all you need to do is change a few financial habits to reduce your spending and spread your money comfortably throughout the month. Try following a few simple money-saving rules.
Get two bank cards for different purposes
Let’s say you keep track of all your money and plan your budget in advance. At the beginning of the month, you allocate most of your income for mandatory expenses and leave a smaller part, for example 30 per cent, for hobbies, cafes and other entertainment.
When all the money is in a single account and you pay for purchases with one card, you can easily exceed the limit on hobbies and go beyond 30%. And it will be discovered late – when the funds are already spent.
If you regularly face such a problem, you can create a second account – specifically for optional expenses. Attach a separate card to it and immediately after receiving your salary, transfer the 30% you have allocated to it.
You will pay for food, petrol, internet, utilities and clothes with the main card. The second card will be responsible for all additional expenses. If you run out of money on it, it means that you should postpone all entertainment for the next month.
Evaluate whether all optional expenses turned out to be useful or not
At the beginning of the next month, review the history of purchases on the second card. You can do this quickly in the banking app.
Perhaps some expenses you would have forgotten about if they hadn’t remained in your history. And other items may cause annoyance and bewilderment. This is what happens if you are disappointed in a purchase or have not received the emotions you expected. But there will be third ones – the ones you will remember with pleasure. They turned out to be necessary, useful or simply made you happy.
Evaluate whether you will want to spend money on purchases from the first and second groups again.
For example, you went to an exhibition of works by a fashionable photographer. But the next day you forgot about it, because the event did not arouse any emotions. And then you went to a new cafe, but you found the desserts expensive and too sweet.
Think: maybe you shouldn’t go to the exhibition next time just because everyone is talking about it. And maybe you’re no longer as fond of sweets as you were as a child. Then next month you’ll save money on such things. And the money you save may be just enough to get you to payday.
Try not to make unnecessary purchases on credit
Sometimes credit can help. For example, your refrigerator suddenly broke, and its repair will cost a little cheaper than buying a new one. If you don’t have money to spare, you can use a credit card.
However, if it is about buying something optional but pleasant, do not rush to use this opportunity. For example, you want to buy a new laptop, although the old one still works well. And you look at your credit card – isn’t it time to use it?
First calculate how much interest you will pay. Evaluate what expenses you will have to reduce if you can not meet the grace period on the credit card.
Perhaps you should postpone the purchase for 2-3 months, save some money during this time and wait for the period of discounts on appliances. Then there is a chance to do without a loan. Or reduce the amount of debt and pay it off in 100-120 days.
Take a break before buying
It’s about things that you can pay for immediately, without savings and loans. For example, you saw a stunning dress in a shop. You can buy it immediately and hang it in the wardrobe. And a month later, when it’s time for easy outfits, look at it and do not understand why you liked it so much.
Try not to make spontaneous purchases. Promise yourself to come back for the thing in 2-3 days.
During this time you will evaluate whether you really want to wear it without unnecessary emotions. If you haven’t changed your mind – buy it. But if it seems to you that you can do without it, put aside money for another thing – the one that will suit you 100%.
If you refrain from even one unnecessary purchase, it will be easier to live up to your salary.
Evaluate the desired goods on the principle of “what you will choose – a thing or money”
This interesting technique will help you assess how much you need the thing you urgently want to buy. Imagine that you are offered a choice: right now to get it for free or take the purchase price in money.
For example, you have a new pair of headphones in front of you, and you would definitely choose them over money. So, it’s worth considering the purchase. And if you were more excited about the money and you already have thoughts on how you would spend it – don’t rush into it. Chances are, you don’t really need the new thing right now.
Make savings every month, even if you can only put a little away
We often hear the advice to set aside at least 10 per cent of your income. But you may think that’s too much. Maybe it’s a significant amount for you, and it’s hard to put that kind of money into the savings section every month.
Then save less. For example, 5%. As a rule, this part of your income can be easily excluded from your monthly expenses. Add to this the cashback you get for debit card expenses.
And don’t think that 2-3 thousand is a trifle that won’t help you create a solid safety cushion anyway.
Imagine, for example, that you urgently need to change the mixer in the bathroom, and you have no money to spare. Then a few thousand from the reserve will be very useful.
Even by saving a little bit at a time, you will be able to accumulate an amount that will definitely not be superfluous. And you won’t have to go into debt if you suddenly need money a few days before payday.
Have a money detox
If there are a couple of days left until the money arrives, and the funds have already run out, you have to somehow get out of it and do without spending. This situation, as well as any forced restrictions, is not pleasant and hits your self-esteem hard.
In order not to be completely without funds or not to spend money from your credit card, try to arrange a kind of “off-loading days” during the month, when you will not buy anything. Call them “shopping-free days” or “money detoxes.”
Plan them in advance and prepare: think of what to make from the products you have at home, choose a TV series or a film for the evening. You can turn such periods into your personal or family tradition, learn to spend them in an interesting and comfortable way.
3-4 days a month without spending will help you save a small but pleasant amount of money before your salary.
