Stretching Your Money on a Tight Budget
Podcast Transcription
Money Talk is a podcast brought to you by PFCU where we will share tips and tricks and talk to the experts on all things finance related. Join us as we cover everything from credit and loans to cyber security and careers. No matter where you are in life, PFCU is here for you.
Hi everyone, I’m your host, Maddy, here for another episode of PFCU’s Money Talk Podcast.
Living with a tight budget can be challenging, especially when your paycheck barely covers the essentials. However, with a little creativity and determination, there are a number of ways to make every dollar count and stretch your funds further.
First of all is to know where your money is going. Take some time and dig deep into your expenses. The $5 lattes you’re buying twice a week may have a bigger impact than you think. You may find some services that you don’t even know that you’re still subscribed to and you don’t use anymore. I know a lot of streaming services will up their prices and send you an email saying, you know, we’re going to charge you more starting next month, you might have missed that email. So, really look into all those little things that you might have missed. Write all of these expenses down and try to find a pattern.
Next is to get rid of unnecessary spending. We all love treating ourselves with a new outfit or take out from our favorite restaurant. However, if your paycheck is already stretched thin, you may want to consider getting rid of some of these unnecessary expenses. Maybe cut down to only one latte a week and learn how to make your favorite restaurant meals at home.
Stick to a budget. Take your monthly income and create a budget. Set aside money for categories such as rent, groceries, bills, all of those things. It is important to use this budget to set money aside for your savings. If you aren’t quite sure where to get started with budgeting, I know it can feel overwhelming, use one of the many free apps available. So, a few you can check out are Mint, Pocket Guard, Goodbudget, Honeydue, and EveryDollar.
Next is to cut down on spending. There are certain items that you can’t cut out of your budget. So instead, try to just cut down the cost of some of these items. So, for example, you have to go grocery shopping, right? So, try to stick to buying generic brand items, stick to a list, do some meal planning and take advantage of coupons. If you are looking for some retail therapy, I know we’ve all been there, check out second hand stores or websites like Facebook Marketplace. I love getting a good find at a thrift store. It is so much fun and it’s so much cheaper than online shopping or going to a retail store.
Next is to try to avoid debt. It can be challenging but avoiding the process of putting expenses on your credit card when you cannot afford them is going to be helpful. Doing this, putting expenses on your credit card that you can’t afford, may seem like a quick and easy solution, however, interest charges add up very quickly and the cycle of debt is going to continue.
And you’ve probably heard us say this a lot but grow your emergency fund. Once you have your finances in order, it’s important to focus on growing that fund. Having a healthy emergency fund will keep you from dipping into your savings or digging yourself into debt when an emergency occurs. And we all have those unexpected expenses that come up or even a loss of income and you want to be as prepared for those as possible.
I hope these tips for saving money if your paycheck is stretched thin were helpful for you and you can take one or two of them away and use them in your every day life. Thank you so much for listening everyone!
Money Talk is a podcast brought to you by PFCU. PFCU offers many products and services to fit your needs, from our various loan and account options to our team of financial coaches to help you reach your goals. Make sure to take advantage of the many conveniences PFCU offers such as the mobile app, mobile wallets, bill pay and more. Visit our website at PFCU the number four me dot com to learn more. PFCU is an equal housing lender and is federally insured by the NCUA.