If you’re having problems setting aside a portion of your monthly paycheck in order to build your savings, you’re not alone. A Bankrate survey reports that around 66 million Americans have zero savings in their emergency funds, and 28 percent have only tucked away around six months worth of savings.
Of course, you could always work with employment agencies to find better paying jobs, but while that’s a work in progress, you need to find a way to live within your means and be smarter with your money. Below are three ways to do just that.
“Pay Yourself” First
The mindset of “paying yourself first” is one of the most important factors affecting your ability to stretch your paycheck. When most people spend their money, they do it in the following sequence: bills, personal expenses and then savings. But savings should come before you spend on miscellaneous expenses. If you have anything left over, you can then spend it on your personal things like clothes, shoes, vacations and dinner out, among others.
Save One Hour’s Worth of Pay Daily
Another great technique is to set your daily savings target to the amount equal to one hour of work. This should be about 12 percent of your monthly gross income.
This will certainly be a daunting target for many workers, so the trick is to go slow. Start with perhaps a quarter of your hourly income for a few weeks, then a half hour, three-quarters and a full hour after a few months.
Create a Budget
It’s one thing to have a “good idea” of what your monthly expenses are, and it’s something else entirely if you have a real budget you can track and match your spending with. You don’t need fancy spreadsheets or software of that sort to create a budget. A simple notebook and pencil will allow you to write down your monthly bills, which typically include your mortgage, utilities, and insurance payments among others.
After your bills, you can then list your miscellaneous expenses, such as food, clothes, and leisure. This will help you really see how you spend your money, helping you cut back on certain areas — such as meals bought outside — to save more.
For more tips and tricks on how to manage your personal finances and increase your odds for job search success, talk to the Wichita, KS, staffing services specialists of Top Notch Personnel. Contact us today to find out how our temporary recruitment services can help you.