6 Daily Money Moves To Get More From Your Paycheck
Written by
Caitlyn Moorhead
Edited by
Gary Dudak
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The feeling that you’ll be able to reach your financial goals, let alone live comfortably, may seem more like a fiscal fairytale than a reality. It’s not uncommon for a significant percentage of people to be living paycheck to paycheck, and in times of economic uncertainty, financial decisions get harder while wallets get thinner.
In other words, it’s hard to build an emergency fund when you don’t have enough in your checking account to cover your expenses. However, despite times being tough, there are a few ways you can cut costs and reduce financial stress when your paycheck arrives. Peace of mind can happen by making a change with these six daily habits to help stretch your money further.
Examine 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 on a daily basis. 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 or savings account before auto-paying for your gym membership.
A good money habit is being preventative. Think of it as a check-up for your financial health. This way, you can spend the money you have rather than experiencing unnecessary overdraft fees or even going into credit card debt with high interest rates.
If you are already in over your head, you can try speaking to 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 at any given time.
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 always buy at the grocery store. As being able to eat is a non-negotiable in your budget, don’t spend extra money on food where it’s avoidable.
If you put in the time and effort into planning meals, it can help you save money throughout the month. It will also help you make a more accurate grocery list to stick to while shopping, rather than impulsively buying whatever looks good.
Buy Generic, Not Name Brand
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 could save you around 25% on your grocery bill.
Pay With a Cash-Back Credit Card
Using a credit card to pay for daily essentials like groceries and gas can give you extra cash back in your pocket and help you stretch your income further. After all, you might as well earn money back on spending you have to do anyway.
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.
Or Stick With Cash
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.
To keep your cash organized, consider taking it a step further and using the envelope method of budgeting. 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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