How to stop living paycheck to paycheck
This guide will help you spend less and make more.
Start saving
Savings accounts
A saving account is a must. It needs to be one where you have at least a 30 day wait to access the money you have saved. I recommend having several savings accounts for different goals. Holiday account, emergency fund, car repairs/upgrade, family planning etc. The 30 day cooling off period will make it easier to avoid impulse purchases.
Start a pension
If I knew what starting a pension early could be worth at retirement I would have started much earlier and I would be much better off today as a result. If you don’t currently have a pension, close this tab and contact your bank about starting a pension right away. You are instantly retaining wealth through the tax that you will avoid on your contributions, never mind the interest that will compound over the next 30 years.
Cut Expenditure
Mobile phone contracts
You don’t need the new iPhone with a 7 trillion pixel camera. Don’t get tricked into paying an unreasonable amount every month when you can get a decent Android for £100-200 and get unlimited calls, texts and minutes for £20 per month on pre pay. If you have already been swindled into a crazy contract then don’t fall for the upgrade offers.
Stop taking drugs
Drugs, including coffee and nicotine, are expensive and addictive so cutting them out a no brainer if you are living paycheck to paycheck.
If you want to get high, try some of the following:
The Runner’s high – Running is highly addictive and you will feel great after getting out for a swim.
Holotropic breathing, people have reported having intense acid-like trips after consuming nothing but fresh air. Try some of Wim Hof’s free video series if you want to give it a try.
Don’t gamble
The odds are stacked against you and the house always wins. Seriously tho, even if you do win the establishment will likely ban you. If you want to make money from gambling then apply for a part-time job in a casino or bookmaker.
Buy in bulk – when the opportunity arises
Sometimes you find insane deals on daily necessities. Soap, shampoo, frozen food etc. When the opportunities capitalise and buy in bulk – just be sure that it’s something that you need and will definitely use before purchasing.
Holidays/Trips
Many holiday destinations are seriously overrated. Are there any authentic traveling destinations left to be ruined by over eager salesmen, counterfeit goods merchants or assembly line excursions?
Camping can be a very cost effective way to get away from your hometown for a while and explore a new area. And the best thing about this is that once you have the essential equipment, it’s basically free (apart from transport).
If you really have the urge to travel I recommend making a travel bucket list and starting a savings account for the top spot, don’t compromise and overpay for average experiences.
Scrap TV subscriptions
This can be a significant bill for many people. Do you really need access to 3,000 channels? There are significant savings to ridding yourself of entertainment bills. Replacing traditional satelitte ot cable TV with a Netflix or Prime account is a great start or perhaps you can “borrow” a friends login in. Better yet, opt out of subscription platforms completely and only use free services like YouTube and Vimeo or consider Curiosity Stream which is currently just $11.99 per year and has all the documentaries you can watch. Podcasts have also come a long way in the last few years, there are many free series that will keep you entertained. Oh, and there are also lots of books in your local library.
Car expenses
If you have already taken out finance on a new car, accept my sincere apologies. The depreciation on new cars is disturbing. You literally drive out of the showroom several grand less well off. Not only that but you will be paying interest for the privilege of being ripped off. Ultimately, a car is something that gets you from a to b. You can get a mid 00s Toyota corolla for less than £2,000 which will never let you down and get similar fuel efficiency to the brand new models. When buying a used car, the most important factors you should be looking for are fuel efficiency and reliability, but always ask your mechanic to check out a used car before you buy.
Make your own coffee
It has been a branding masterclass for the coffee giants we see on our highstreets. Some of them charge as high as £6 for a cup of coffee. If you are drinking 4 takeaway coffees a week, you may be spending over £1,000 on coffee per year. Put that figure into a compounding interest calculator and see if it’s worth it. You can get basically the exact same drink for a fraction of the price if you brew your own coffee at home. Also, there are a myriad of sleep benefits if you cut caffeine out completely.
Cook at home & take a packed lunch
If you eat lunch or dinner out more than 4 times a week you are probably spending more than you expect on food. Meal prepping at the start of the week is the best approach. So spend one evening making enough lunches and dinners for the week and keep them in the refrigerator or freezer for convenience microwave dinners. You will likely eat more healthier this way also as it will negate the effects of hunger cravings.
