How can you avoid blowing your paycheck before you get paid and manage your finances better? Consider these suggestions.
Keeping track of how you spend your money can be difficult. This is especially true for those who do not take time to make a detailed monthly budget. Unfortunately, only 32% of Americans do so, according to research-based consulting company Gallup. This leaves two-thirds of the population at a loss when it comes to managing their personal and family finances.
Since majority of Americans do not have a monthly budget, it is not surprising why most don’t have any money left at the end of the month. Worse, some have the knack of blowing their paychecks even before they get paid! To avoid getting into a similar situation, here are some tips that can help you manage your paycheck better.
Review your bank fees. Most banks charge a maintenance fee on a monthly or yearly basis. Since this can cost you anywhere from $300 per year, you may want to check out the fine print to see if there is a way that you can avoid it. You may also want to watch out for other bank fees (overdraft fees, ATM fees, withdrawal penalties and minimum balance fees) while you’re at it. Use these information to see if you should switch to another account that offers better terms and charge lower fees.
Pay credit card balance in full. Maintaining a balance on your credit card will cost you a lot of money and drain your paycheck before you even know it.
Be wiser when buying a car. Car payments can take a huge chunk off your paycheck, especially if you are planning to buy a brand new car. However, if you are buying a used car, you can cut your monthly car payments in half.
Pay off your student loans. Studies reveal that the average college graduate has more than $30,000 in student loans. Needless to say, this can take off another huge chunk of your paycheck so consider consolidating your loans into one single payment with a lower interest rate. If you still can’t meet the minimum monthly payments, consider negotiating a payment plan with your lender. However, please be aware that this move may hurt your credit score.
Stop paying for subscriptions you do not use. Every little thing counts. So, while your Hulu, Netflix and Spotify subscriptions charge lower than a cable subscription, you are still leaking money if you are paying for something that you do not usually use. To save money and avoid being out of cash at the end of the month, consider cutting these recurring subscriptions and use free alternatives instead.