Covering All Your Bases: Making the Most of That Monthly Paycheck

May 10, 2019

Today’s post is written by an external author, I can definitely relate to this post as I’m sure many of us can. I’ll be trying my best to follow some of these tips to avoid unnecessary spending and make the most of my monthly paycheck.

Image credit: Robert Bogdan

It feels like a race to get to the finish line. You’re struggling through the month, thinking that you really need to get out more, but your finances don’t allow this. And as soon as that paycheck comes, you do a little happy dance, but count the days until you’re skint again! And this is why it’s important for you to use your paycheck wisely as soon as you get that wonderful shiny envelope in the post! Spending your paycheck isn’t just about paying off the bills, nor is it about making safe financial investments, but it’s about enjoying yourself as well! How can we cover all these bases?

Image result for smile to frown paycheck gif

Embrace The 50/20/30 Rule

The best way to make sure you are getting the most out of the money you earn is by using this rule. 50% is spent on needs, like utility bills, 30% on things that you want, and 20% on savings. Once you get into this attitude, you can make the most of each area. And while you may think that you need that Winsor Bishop watch, unfortunately, this will go into the “want” pile!

Purchase Experiences Rather Than Things

As nice as it is to get that watch you’ve been drooling over for so long, think about what will benefit you the most right now. If you’re happy with that sparkly bit of jewellery and you can make your peace with not going out for the rest of the month, then so be it! But if you are looking for quality in terms of the life you lead, think about experiences. More people are embracing that minimalist lifestyle now, and while material goods are great once in a while, if you can think about spending money on a meal with a friend, not only are you getting some delicious food, but you are having quality time with people you care about. A lot of people purchase experiences rather than items these days, and for the very simple reason is that experiences loom longer in the mind. And if you don’t have much money, make it work in your favour. Things like a picnic, or arming yourself with a £20 note and endeavouring to spend just that while out means that you have no choice but to live within your means.

Making The Most Of Minimal Savings

Living within your means is very difficult now, but if you can put a little bit of your money towards saving for something, every little bit helps. These days, with apps like Plum, it makes it easier than ever to put some money aside. We can feel that our paycheck is so paltry that we can’t save anything, but we can definitely get into the habit of saving a little bit here and there.

You know the feeling; you get that paycheck and you think, “I’d better spend all this before I have no money!” But instead of frittering all of it away, you can embrace the 50/20/30 rule or just focus on experiences. You can still save a  bit of money here and there, and while it can feel impossible to make the most of your paycheck, there are ways around this.

3 comments so far.

3 responses to “Covering All Your Bases: Making the Most of That Monthly Paycheck”

  1. I’ve never heard of the 50/20/30 rule before but it sounds like a good way to live! I’ve been really bad with saving recently as I’ve been treating myself a little more than usual hahaha but I definitely need to get back into the habit of putting some away rather than transferring it back and forth 😂 I definitely agree with the experiences part as in reality you’re getting much more out of it! I think of it as memories last forever whereas a new top will last you a year or so and you’re not going to be on your death bed thinking “man I wish I would’ve bought those shoes, they would’ve improved my life”. Sometimes it is totally necessary to treat yourself to a few new things though 😊
    Alice Xx

    • I hadn’t either, but it’s actually pretty clever! Yeah I find it so hard to save as I’m still trying to get out of the habit of impulse buying. Although I did go into Primark last week and only bought what I needed which was impressive for me haha. I’m constantly transferring money back and forth as well, oops. Yeah that’s actually so true, I’ll definitely keep that in mind if I feel myself slipping into my impulse buying brain. Definitely so fun to treat yourself though hehe xx

  2. I don’t think I’ve consciously applied this rule, but it’s something I’ve gotten into the habit of over the last couple of years (although this month has been a bit crazy because of changing jobs, different pay days and getting a bit over zealous with the spending!) – there’s a great feeling when you look at your savings account and theres more money in there than you’ve ever saved before! This is a really helpful post! ❤️❤️

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