6 Daily Money Habits That Will Make Your Paycheck Feel Bigger
Written by
Caitlyn Moorhead
Edited by
Gary Dudak
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Being able to reach your financial goals, let alone live comfortably, may feel more like a fiscal fairytale than reality. It’s not uncommon for a significant percentage of people to be living paycheck to paycheck, and in times of economic uncertainty, money decisions often get harder while wallets get thinner.
In other words, it’s hard to build an emergency fund when you don’t have enough to cover your expenses. But despite times being tough, there are a few ways you can cut costs and reduce financial stress. Consider these six daily money habits that can make your paycheck feel bigger than it actually is.
Review Your Transactions
One of the most effective ways to stay on top of your financial habits and prevent overspending is to check your credit card and bank account transactions regularly. It’s easy to overlook the true amount you’ve spent at any given moment until it’s too late. So make it a habit to double-check what you have in your checking account before auto-paying for your gym membership.
Think of this preventative move as a check-up for your financial health. It allows you to keep more money rather than experiencing unnecessary overdraft fees or going into credit card debt with high interest rates.
If you are already in over your head, try speaking with an advisor. Or if you feel like you just need a bit of help, get a budgeting app. This links all your financial accounts in one place and makes it easy to check in on your spending and saving habits or alert you to upcoming bills.
Plan Meals in Advance
Food costs are one area that inflation can hit the hardest, especially when you factor in tariffs on everyday items you buy at the grocery store. Since being able to eat is a non-negotiable in your budget, frugal grocery tips can go a long way.
This is where meal planning comes in. Make sure you only put ingredients you need for meal prep on your grocery list. Then, stick to it and avoid any impulse buys.
Go Generic
Another way to save money when shopping for groceries or household items is to opt for generic or store-brand products instead of name-brand options. For example, something like a generic cereal at your local market is much cheaper than the well-known brand, even though both are made up of the same ingredients.
Many savvy shoppers estimate that buying generic products saves you around 25% on your grocery bill.
Pay With a Cash-Back Credit Card
Using a rewards credit card to pay for daily essentials like groceries and gas can give you extra cash back and help you stretch your income further. You might as well earn money on spending you have to do anyway, right?
The key is to pick a cash-back card that offers the highest rewards in spending categories that match your shopping habits. Of course, it’s important to only charge what you can afford to pay off at the end of each month. Otherwise, interest charges will quickly wipe out any cash-back savings. Paying your balance in full will also boost your credit score.
Try a Cash-Only Approach
Alternatively, if you don’t want to risk accumulating debt with a credit card, try going on an “all cash diet.” Using cash instead of credit cards for your daily expenses can help you keep track of your spending and avoid overdoing it. Simply put, once the cash is gone you stop spending, which builds discipline and awareness.
Consider using the envelope method for this strategy. This involves using labeled envelopes (such as “gas” and “phone”) as a way of allocating various budgets throughout the month. Once you decide on the budget amount for each envelope, that’s the only fund you can use for the entire month. Once you run out of cash, you stop spending in that category.
Take Pictures of Every Receipt
Depending on how detail-oriented you want to get, you can also turn everyday purchases into cash back by using a free rewards app like Fetch. By getting in the habit of taking a picture of every receipt when you complete a transaction, you can then earn points toward free gift cards from places like Amazon and Target. Those gift cards can then be used to offset future purchases.
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