When you live paycheck to paycheck what is the best way to save money and budget?

Answer 1

Look hard at your monthly expenses.

30 years ago, nobody paid for TV. Can you go back to using an antenna instead of cable or satellite.

Do you and your spouse, if you have one, both need cell phones. Do you both really talk enough (like over 200 minutes a month) to justify your monthly cell phone plan? Prepaid plans are available for 10 cents a minute. Check out T-Mobile. If you pay $100 in advance, those 1000 minutes are good for 1-year, vs. $35 or so monthly bill that most people don't even use half the minutes available.

Do you need call waiting and caller ID on your phone? Dump'em. If you are paying more than 3.9 cents per minute for domestic long distance, you are getting hosed. Americom offers that with no monthly charges and no monthly minimum usage requirements.

Shop your auto insurance. Especially check out Costco if you are a member. Last year I shopped around for auto insurance. Everyone gave me higher prices than what I was already paying, except Costco. They offered me the same coverage for $500 less per year.

Do this with every bill that comes in. Ask yourself if you really need that service, at that level. Is there a cheaper alternative? Can I pare back on the service plan?

As for your car or truck. Buy them lightly used with low miles, and save a ton. Then drive it 8 to 10 years and save even more. I haven't had a car payment in 3 years and it feels great! My car is 8 years old and it still drives wonderfully. Just give it a professional detailing every now and then for that new car feel!

There's a great book by a radio consumer advocate named Clark Howard. It's called "Get Clark Smart: The Ultimate Guide to Getting Rich from America's Money-Saving Expert." This book is full of wise advice on how to save, spend and invest your money. It is not a get rich quick book.

You'll be amazed by how much money you can save, by finding better and cheaper alternatives, or doing without services you rarely use.

Answer 2

Cut back as much as you can first. I started buying store brand and no-name brand products first. Most of them aren't so bad anymore! And when you can save $3 on a bottle of laundry detergent... that's progress! Next step... figure out how much you spend on "you things". Eating out, movies, clothes, groceries you don't really need (Candy, soda etc) Once you have your list figure out what you are willing to cut out. Maybe eating dinner only once a month, instead of once a week for example. Then have whatever the amount you would have spent on that (I'll use $50 as an example) and have it sent from your paycheck DIRECTLY into a interest bearing savings account. If you don't see it, you don't spend it! The amount that you send from your check each payday is not overly important. What's important is that you're cutting back, and sending something into savings. As you start to make more money, send more into savings. Oh, and a great tip to save $$ at the grocery store: plan your meals ahead and stick to the menu! That way you're not buying this and that, and what you think you'll need. You'll know exactly what you have to get to eat, and you can shop wisely. It's worked for my hubby and I so far! Also, any extra money that gets thrown your way (birthday checks from Grandma or you sell something on ebay) put that into savings also. It'll grow before you know it!

Answer 3

You should be contributing to a 401 k savings plan if one is offered by your employer. Before you can begin to save money. You first need to evaluate your spending habits over the last 30-60 days. Keeping a check register is a good way to assess expenses. Take note to how much money is being spent on essentials versus incidentals. After you have done that, determine how much disposable income "if there as such a thing" i.e. entertainment, fast food, etc..can be set aside for savings. It's not easy at first but you have to set financial goals for yourself...good luck.

Answer 4

Give the first 10% away. It will come back to you. You will not become rich, but you will generally have some left over. Save the left over. Reduce your personal expenses. Cut out coffee, Coke and snacks at work that cost more than $1.00 per day. If you smoke, stop. Cigs are expensive. put what you save in a mutual fund with no load, and say a $50 a month payment plan.

Answer 5

I always write down everything before the month begins - kind of a map for each check to decide when everything is getting paid. That way, you can try saving little bundles along the way as long as you have everything planned out in writing. I feel lost unless I do this - my husband and I started doing this about 10 months ago and were able to move across the country with very little planning (about a month) Good luck!

Answer 6

The first step is to reduce an debts like credit cards. Develop a plan that is tough but you can do it. Do not go cold turkey but you will need to sacrifice some liesure and desires. Next develop a plan to live within your means. Consider using a software program such as quicken to track expenses and income.

Some steps but the first is the key if you have debt.

Answer 7

Put away a small amount each payday right away - it's good if you can have it automatically deducted and put into savings, then you never see it. When you get raises, put maybe half into savings - it's money you aren't used to having available to spend, but by putting in only half you'll at least feel like you got SOMETHING from the raise. Good luck.

Answer 8

Make a jar or cup for each expense,ex: rent, entertainment, food and groceries....put a certain amount of cash each month in that jar for that particular month and stick to it, then if there is any money left over that month put it in a savings but be sure not to pull out any extra other than what is in the jar

Answer 9

I think you should always pay yourself first. no matter how little money you have you should always put 20 dollars a week in a savings account. It may not seem like much but it will add up over time. When you start to make more money, you can add more to it every week.

Answer 10

I always always pay my bills first, when they need to be paid. Then everything else gets taken care of. Right now I can't afford anything extra besides groceries and gas for my car! It's a pain in the asssssssssssssss!