You may have noticed that your paychecks seem to be holding you down for less time each week, especially if you’re used to living paycheck-to-paycheck. Well, it’s unfortunately true. Last Thursday, the Labor Department reported that consumer prices have risen at “their fastest pace in over six years” according to the New York Daily News.
That’s right. The average price of all your daily commodities is on the rise, and there’s no indication of when it might stop. Currently, inflation is at 2.9%, with many citing Chinese import tariffs that went into effect this month as the main cause. Experts report there is further room for that percentage to rise on the case of inflation.
So how can we make the most out of each of our paychecks? Emergency funds are the biggest ways to do so. Every paycheck, I set aside at least 100 dollars to a savings account so I always have a backup fund. Additionally, using cash instead of a card can help you physically budget out how much money you actually have to spend. Make sure it’s going towards things you actually need.
Always look for ways to improve or prolong your paychecks. Even if it means cutting out some entertainment, it will make up for it in the long run. Be careful about automatic bill payment, because overcharge fees can sneak up if you aren’t setting aside the right amount for bills every month. My roommates and I were hit with a 40 dollar overcharge fee by a short oversight in finances.
Avoid these mini mistakes so you can stretch your paychecks and have some money roll over, and you’re not spreading your budget too thin.