Living Paycheck to Paycheck...not getting ahead?

Question

I have been living from paycheck to paycheck, and I don't feel I'm accomplishing a whole lot.
I get a paycheck, and try to budget my bills and my necessities, every two weeks, but after that's done, I'm still struggling before my next payroll, in making ends meet! How can I get by, with the two jobs that I have, and making over $2000 a month? I don't have to pay rent, and the bills I do have, don't exceed $875 a month! But I'm still broke before my next paycheck!!
How can I manage my money better? How do I budget and save without leaving myself short?
I am married, have two kids, and the car we have was given to us as a gift (so it's paid), and where I work, is only a half a mile away, and the other job is about 3 miles away, so it's not like I have to do extensive travelling!! What's with??

Answer 1

The first thing you need to do is get a better handle on where you money is actually going.......
It looks like you know your "living expenses"
The first thing I would do is track where every penny is spent for 1-2 months...............you will be surprised at how much unaccounted for wasted cash is spent on things you can live with out. Example you stop to get gas but end up with pop and cookies. You need the gas not the pop and cookies. With two kids I suspect alot of the extra money is spent on them. What are their need to haves vs. extras /want to haves

It actually comes down to a simple equation..........
money out can never exceed money in
Income needs to equal or exceed expenses
If expenses are geater than income you will never get ahead

Start with tracking every penny.........yes every penny
Analyze your spending patterns
Change the pattern..........make wiser spending choices
Include as an expense... savings.......even if it is small $10-25/per check if that is all you can afford............
There are many good books out there that will give you more advice on was to budget better
Suze Orman has several good books........talks about why you spend/emotional spending .....fix the emotional issue fix the problem
The Automatic Millionaire is another good book

There really is no better night's sleep achieved then when you have piece of mind about your money...........

The last point is Self Discipline............it's your money you are the only one who can control it and sometimes that means controlling yourself first....................I know it's a cute pair of shoes but do you really need them????????????? j/k

Answer 2

You're married and making over $2000 a month, but what about him? Are you supporting the family by yourself? Anyway,
when you say your bills are $875 per month are you including groceries, gas, incidentals, clothing, doctor bills, medicine, gifts??? If not, they really add up especially when you have kids. But you can still save. Write down everything you spend for one month. Account for everything and then see where you can cut back. Next, every payday put money into a savings account. Do you best not to touch it. If you get a raise or a bonus or a windfall, put part of it into savings. Budget your groceries. Make a list and stick to it. Clip coupons, but don't buy things you wouldn't have just because you have a coupon. Restaurant meals and carry out cost a small fortune. Cook at home. Those little things can really add up. Best of luck.

Answer 3

Walk to work, its a start. I get about 400 a mnth Disability because I earned it. I would trade places with you right now and have $300 saved up in 2 months easy.Turn the thermostat the other way by 5 degrees, and dont touch it. Do the children go to school. Do they ride the Bus that you pay for every week or are they driven. There's another $150 . Think small, its all those nikels and dimes that make a 100. I betcha if you sat down and thought on it, no paperwork or junk, just think, am I really as cold as that person that lives in the street. am I really as hungry as that person in the next state. do I really need a new shirt. eventually things will start to add up. As things add up, you will notice what you can do without, or adjust to save.
My grandfater, yes he is dead, but he enjoyed each day that he was here, and he was not a wealthy man, but he was the richest man that ever was because he was happy with his reality.
Is the world fair, no. Will prices rise, yes. These are realities that we accept.

Answer 4

You need to carry one of those little spiral notebooks with you. And with your next pay check every time you spend 1 penny write it down. Keep all your receipts. It's going to be the only way to see where your money is going. The best way to save money is right away deduct a certain amount from your check. 10, 20, 50 bucks what ever your comfortable to start with even before you pay your bills. If you do that, you won't miss it. I am on disability income and I am able to save my change every month. No, it's not much, but it's something. And I can usually have some of check left over to save up for a big ticket item. It takes discipline, but you can do it. Reduce your debt load as much as possible, know where every penny is going, and pay yourself first. I hope this helps. Good Luck.

Answer 5

I know this from my own experience; You are spending money on things you really don't need. The only way you're going to realize how you need to budget your money is if you move out. My husband and I have moved out of my parents house for going on a year, and things have gotten so much better. You just so used to having all of that extra money, and you think just because you have that extra money, that you can spend it on whatever. Trust me! I've been there. We're barely getting out of those bad habits. Whatever you do, don't eat out, don't buy yourselves things other than necessities. Every time you buy yourself something think about whether or not you really need it. If you really don't, don't buy it. Another thing I've learned is that I now put away 10% of my husbands paycheck in a savings account. I actually have it automatically transferred from his direct deposit. Then I pretend that account doesn't exist. The account also has a penalty charge if I try and take the money out before the time of year I'm allowed to. The good thing about it is that when I really need the money, so much of it is saved already that I don't have to worry.

Answer 6

Ive heard people speak and have read things that "you need to pay yourself first". Open a savings account if you dont have one. Put the amount in every week that you spend on extras like starbucks, fast food, drinks, etc. in the account. That should be about $50 a week or so. (yes I know, it adds up fast...) After you put the money away, just dont think about it, and learn to live on what you have. Make sure you fill up your gas tank every pay day and Ive even found that paying bills online is great because it is automatically deducted from my checking account/ debit card so that I dont have to wait for a check to clear, or dont forget that a check is out there....

You say you have kids, I know kids cost alot, and I dont have any myself so perhaps just try to set aside or calculate in a specific amount you will spend on them each week for extra things, and what not. Maybe not buy extra clothing and stuff. Im not a mother so I cant really answer this part as best as I wish I could.

Just work on it, and remember to "pay yourself first" in savings... and you will get ahead. Its something we all have to learn, to budget first that is. You will even earn a little interest in your savings :)

Answer 7

I would guess you are blowing money on stupid crap you really dont need in the name of necessity (coffee on way to work, smoking, eating out, etc) I suspect thats what you mean by "leaving yourself short". So what it all comes down to is priority. Would you rather have A_________ or B) Savings.
The other things I ask myself (because I am to some extent in the same spot) is How long will I have _____ and how long will I enjoy it? How Many hours do I have to work for _______?
Am I willing to do that?
You can cut out a lot of things that way.
We confuse what we need with what we want a lot of times.
And finally.....
Put a portion of you money every check in a special account and never - NEVER - look at it.

Answer 8

well arga,

even without many bills the fact that you have two kids, a family is enoough reason for your predicament.

but Gandhi said long back that" if you spend less than you earn, you are rich" sounds simplistic, but can be a good motivator. even i had same problem a year back which was continuing for more than 5 years so i changed my whole life. from working employee i got scholorship and became student. now since my condition, location and whole pattern of life has changed, i have totally different needs its has become easy for me to manage my finance.

think how can you get out of the ritual thats driving yr life? if you think that certain things yiu have been doing since ages, change them.

only change can get you out of it....not even the increased income.

regards and all the best

Answer 9

You have to honestly look at what your spending the money on. Eating out is expensive compared to cooking at home. Going out to the movies is more expensive than renting a video. Try forcing yourself to take 10% and deposit it into your savings account and don't touch it except for true emergencies. You could also try riding a bike to work and saving the gas money.

Answer 10

If I were you I would....

1. Not smoke
2. Cancel Cable
3. Stop eating in restaurants.
4. Avoid taking trips in the car when it's within walking distance to help with gas money
5. Only buy healthy foods, not junk food.
6. When doing laundry, avoid using the dryer as it can use up a lot of power. Hang dry them if all possible
7. Turn off lights to save energy and your hydro bill
8. Cancel the internet.

The important things you should be thankful for is having a roof over your head and food to feed your family. Anything else is chewing up your income when it can go to more important things.