3 Ways to Better Manage your Paycheck

3 Ways to Better Manage your Paycheck

Your paycheck is spent but you don’t know where it all went. Is this a familiar scenario to you? Tracking your spending is half the battle. Below are some tips for managing your paychecks so you can make the most of them and so you can avoid scratching your head whet it is all spent, wondering what you have done with your hard earned money.

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• Budget
Creating a budget is huge. Begin with your monthly take-home pay. Then figure in essential expenses such as rent, insurance, utilities, car payments, groceries and transportation fees as well as any other lifestyle expenses you may spend money on, including gym memberships, cable TV, restaurants, gifts and so on. Debt and savings allocations also need to be figured into your budget.

•Track Spending
Look back at your spending habits from the past three months. Look at your bank account and get a sense of your typical spending. Set yourself goals for the next three months, tracking daily expenses. This will make it easier for you to make adjustments.

•Cut up Those Credit Cards
Having a continual credit card balance from month to month can keep you living paycheck-to-paycheck, especially if you have a card with a high monthly interest charge. If your interest charge is close to your minimum payment, you may only be chipping away at your balance in small increments, extending your payments far into the future.

Cut out lifestyle expenses to tackle your credit card debt to get out of debt long term. This means maybe less travel or restaurant and bar tickets.

If you prefer to hang onto your credit cards, leave them at home and use your debit and credit cards until you have your balance under control.

For help on managing your credit, contact us today.

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