Payday tips to make your money last
Waiting for payday can make the month feel much longer than it is, especially if you’re not sure whether your money is going to make it till the end of the month. The good news is that careful planning and good spending decisions can help you stretch your salary without leaving you feeling stressed.
Here are the dos and don’ts of making your money last until payday:
Do prioritise your expenses
The trick to balancing your budget is to know that you only have a finite amount of money and how you spend it will affect how long it lasts. Determine what your ‘must pay’ expenses are and get them out of the way so that you know that whatever else you do with your money, your basic expenses (e.g. housing, food and utilities) are taken care of.
Also prioritise spending money and what you want to do with that money. Set aside an amount that you can spend comfortably to get/do the things you enjoy.
Do keep track of your spending
Small purchases can add up to large amounts without you noticing. For example, do you ‘add to cart’ when you’re having a bad day, get tempted to buy the snacks while waiting in the queue to pay or tend to spend more than you planned on drinks at dinner and are then surprised when the bill comes?
Understanding your own spending habits and the type of things you usually spend your money on will help you avoid doing so or help you make better choices. Use our Money Movements add-on on our Banking App to help you stay on top of how you’re managing your money.
Do create a spending plan with your family
Your budget plans could be derailed if your partner isn’t on the same page or if you’re constantly giving in to requests from your children. Include everyone in the plan and help them understand the (purpose of the) spending limits so they’ll have context when you say no and, hopefully, there’ll be less fighting about money.
Do change your mindset
Regardless of how you’ve managed money in the past, you can be in control and make positive financial decisions. It might not all change at once, but small and consistent changes can help you progress. This also includes being aware of challenges and how you approach your wants.
Instead of saying, “I don’t have money,” say, “It’s not a priority now,” or instead of saying, “I don’t need it,” when you have the impulse to buy something, rather ask yourself, “Can I do without it?” That way you’re not chastising yourself or being restrictive; you’re in control of your monetary decisions and prioritising yourself.
Do have a financial goal
Whether it’s saving or paying off something, having a purpose for your money means you’re working towards a goal that is meaningful and you’re more likely to stick to it instead of just spending money without really knowing where it’s going.
Don’t go into debt
Consider using only cash for a while or not using credit, and if you need to borrow, do so wisely. This could help avoid the opportunity to overspend, which will only cost you more later as the interest is an extra expense on every purchase. Paying money towards debt takes away money that you could put towards essential expenses.
Don’t pay for things you don’t use (or don’t need)
Have a gym membership or streaming subscription you don’t use? Try to get rid of it. While you might have the best intentions, it’s taking up space in your budget, and it’s not serving you or your needs.
Don’t buy more to save more
Retailers entice you to spend more by giving you more savings if you buy more, but even if you get a discount, you’re still spending more than you intended to, and that’s an easy way to blow your budget.
One other way of overspending is to spend more to get free shipping. Do the math and work out whether it’s worth it to buy that extra item; either way, you end up paying for your free delivery.
Don’t shop without a list
Whether it’s at the store or online, plan ahead for what you need and stick to it. Aimlessly browsing can be fun, but it can also become expensive because you’ll walk out with things you don’t need or forget about the things you did, costing you more in the end.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).