How to Stop Living Paycheque to Paycheque

Managing finances is a big challenge for many people. Whether you are a mom handling the family’s household finances or a young professional living on your own, budgeting can prove to be tricky because you need to be rational (more than being emotional) on your spending.

Budgeting should not be a mental list; it needs to be written down so you are aware of your cash flow and can adjust accordingly. In this way, you will be able to maximize your income and stop of living from paycheque to paycheque.

Here are some tips we prepared for you to start on your money project:

• As a starting point, make a list of your expenses. Being conscious of where your paycheque actually goes on is the first step in budgeting.  List ALL the things you spend on and categorize them based on needs and wants.

• Evaluate your needs and wants. Needs are described as something that are essential to one’s daily living while wants are something you would like to have but is not necessary for the circumstance. Food and water usually comprise the ‘needs’ list while an expensive $500 dollar bag can be classified under your ‘wants’ list (we presume you wouldn’t die if that bag is not in your closet). However, other essentials can vary from household to household. Some may put in a fast data connection as a need especially when working online is part of their job while others may not consider this essential to their everyday lives.

• Scrutinize your spending and shortlist the items you can save on especially from your ‘wants’ column. Think of your ‘wants’ column as something that you can buy if you have extra money. Exercising delayed gratification may be easier than stressing day in and day out not knowing where your paycheque went and paying for debts that you could have avoided.

• If you are still stuck in a financial bind after you ‘lean out’ your expenses, try searching for secondary sources of income. There are many options today that are available to those who are smart with their time. Try selling some items online or get a freelance writing or web-designing job. If you love animals, why not get a weekend gig as a dog walker? In this way, you get to do the thing you love and at the same time, earn more income!

There are many ways to skin the cat, as they say, and this holds true even with your finances. The one thing that you need to remember is to always live within your means. This simply means that you spend less than what you earn every month and ideally, to generate savings from your earnings as well. Having ample savings will help you especially when unforeseen circumstances and emergencies arise.

If, however, you are caught unprepared, GoDay can help you during this urgent but unplanned financial need. GoDay has simple and clear terms that make borrowing fast, reliable and most importantly, transparent with no hidden fees. GoDay adheres to the regulations of the Ontario Payday Loans Act and aims to educate consumers on sound financial management.