More than 63 percent of America’s workers are still living paycheck to paycheck, according to a recent survey conducted by the American Payroll Association, and I would guess that percentage is higher for single parent families. (http://www.bankrate.com/brm/news/cheap/20031028a2.asp)
Living from paycheck to paycheck can be stressful and hinder us from saving or meeting other financial goals. Lack of income is not always the main problem. Overspending and living outside of a budget can sometimes be a bigger hindrance than being underpaid. Try some of the following tips to help stretch your earnings.
1. Create a budget and stick to it even if your favorite store is having an amazing once in a lifetime 50% off sale. Put money in the budget for fun and for those once in a lifetime sales.
2. Buy generic. Many off-brand foods and products have the same ingredients. If you don’t believe this, just compare the labels of the store brand and national brand. Use coupons. Sometimes competitors will accept another store’s coupons that print out with your receipt. One store even doubled their competitor’s coupon!
3. Avoid buying things or subscribing to services that you really don’t need. For example, are you really watching both of the movie channels in your cable lineup? Perhaps you can just go with the basic package that excludes the movie channels and save by renting only the movies you really want to see.
4. Utilize online bill paying services either through your bank, which is easier to keep track of, or directly through the company you are paying. Most utility companies now accept online payments. This can really save in time, stamps and purchasing checks.
5. Buy non-perishable grocery items that are on sale even if you do not need them that week. Why buy toilet paper or that jar of pasta sauce at full price when you will need them in two weeks? Don’t overbuy, but buy reasonable amounts that you have the storage space for.
6. Take your own lunch to work to avoid eating out every day. Try eating at restaurants only once or twice a month.
Be disciplined in whatever you do to stretch your paycheck. Avoid impulse buying. If my children want to make a purchase on their own I tell them they have to wait one week and if they really still want the item then they can use funds from their savings or spending accounts to make the purchase. This is teaching them not to buy on impulse, and I try to follow the same model to reduce unnecessary expenses.
Check out other money saving tips at the Families.Com Frugal Living Blog