Want ways to stretch your Paycheck?
NEW YORK (Bankrate) - How would you like to work 40 hours a week and pocket just $100 after expenses? Why bother, right? A lot of dual-income couples who have children are caught in that scenario.
Certified financial planner Barry Vosler of DeWitt, Iowa, uses the hypothetical example of a spouse earning $40,000.
"Take out the obvious -- taxes. Federal, state, local and FICA, that takes 40 percent out. Deduct child care, clothing expenses and travel -- now you're down to 24 percent. Then, extra meals -- either eating lunch out or you're too tired to fix a meal at home so you go out for dinner or get takeout. Then you have 'guilt expenses.' You buy extra things for the kids that you wouldn't have if you were spending more time with them. Then you have house cleaning and lawn service because you want to spend the time you have with your children. Now you're down to 13 percent take-home pay."
The 13 percent solution
Discouraging, isn't it? But this isn't to keep anyone from working. There are plenty of personal and financial reasons why someone in this situation wants to be in the workforce.
Maybe you're doing it for your own satisfaction, trying to maintain professional skills or a knowledge base -- or maybe you want to sock away that $5,200 each year in a retirement account or a vacation cabin in the mountains. What's important is taking advantage of your employer's benefits package so you make both paychecks stretch.
Give yourself a raise! Stretch your paycheck
Most of us receive our paychecks, pay our bills and spend the rest, not thinking about ways to make our salary go further.
More than 63 percent of America's workers are still living paycheck to paycheck, according to a recent survey conducted by the American Payroll Association, and although up-to-date wardrobes and French manicures might provide comfort, so does having enough money to pay bills and save for the future.
"Most people have enough money coming in that they don't have to be diligent," says Judy Lawrence, author of The Budget Kit: The Common Cents Money Management Workbook.
Instead of examining ways to make their money work in their favor, most people relax into comfortable, and often nonproductive, spending habits, says Lawrence.
Below are some easy ways to stretch your take-home pay.
Push your income to the limit
Take charge of your salary. The first step in maximizing what you earn is to understand where you spend money -- including $3 on a latte every morning and $10 on late fees at Blockbuster.
Lawrence recommends writing down everything you spend.
"You have to be in a certain psychological place to do this," she says. But it's helpful to know what your lifestyle is really costing you. Face the numbers. Once you know how much you spend, look for little ways to save.
The next step is discovering how your employer can help.
Take full advantage of all the employer-sponsored benefits such as flexible spending accounts, retirement plans and direct deposit to save time and money.
Stretch your grocery bill!!!
If at the end of the month you’re scraping to make rent or your house payment and you don’t know where all the money went, it’s high time you started paying more attention to your budget. Laying it all out in black and white can really make the difference between living from paycheck to paycheck and living comfortably. While you could batten down the hatches and cut your cable costs (what, no HBO?), there’s an easier way to save big. Find out how you can save bundles by shopping smarter. Plus: How shopping savvy are you?
Do NOT Shop Until You Know This...
The #1 most important tip of all time (with regards to grocery shopping) is this: Never, and I mean NEVER, go shopping when you’re hungry.
Everything will look a million times more appetizing than if your belly was full, and you’ll actually put stuff in your cart that you had no intention of buying – like donuts, cookies and chips.
Eat before you shop, every time.
And This
Leave the kids at home. Whining, begging and pleading children are not only a nuisance and a distraction from your grocery shopping mission, they can really add to the final bill by coaxing you into buying junk food, sweets and useless plastic toys.
Oh – you think you aren’t the type of parent to give in to a child throwing a tantrum?
You’d be surprised at how easily you’ll give into a screaming child when all of the store’s patrons are giving you the evil eye.
A Tisket, a Tasket, Put a List in Your Basket
There are three lists that you should always use in order to make your shopping experience successful.
Meal list: Decide what you will be eating for the entire week ahead before you shop.
Grocery list: Turn your meal list into your grocery list by breaking down each meal into the single ingredients you will need to purchase to make the meal. Add any extras you can think of, such as toiletries. Stick to this list.
Price list: Compare prices at different stores and of different brands to see where you can get the best deals. Products on sale are not always a bargain, and you’ll know better if you have your price list handy.
Be Brand Savvy
Stop buying brand-name foods that taste the same as generic. You won’t notice the switch and neither will your family.
Buy generic when you can and use coupons whenever possible. You will be amazed at how 40 cents here and 20 cents there can really add up to major savings.
Also, when comparing one brand to another to see which is cheaper, look at the price per ounce and not the price of the item because the package size may be different.
Bulk is Better
Everyone knows that buying in bulk is cheaper, but here’s an extra tidbit: Cook in bulk, too. You can save both time and money by cooking large meals and then storing the leftovers in freezer-safe containers.
Imagine this major time-saver: Next Monday’s dinner could be just a short defrosting and reheating away.
Discounts Count
Don’t waste your money buying hand soap, toilet paper and other goods at the regular store. Make an extra trip to a local discount store or warehouse store, like Costco, where you can often find the same product at half the cost.
Do It Yourself
Whenever possible, avoid prepared foods such as frozen entrées, pre-cooked food from the deli and take-out from restaurants.
You can make many foods at home and save yourself big bucks. A homemade pizza is less expensive than most frozen pizzas and definitely much cheaper than ordering out.
Plus, you can turn cooking into a fun family event when the meal is as easy as having the kids slop sauce, cheese and toppings onto pizza dough.
Stretch Spendy Items
Certain foods that are staples in your diet are more expensive than others and there’s no way around it.
Meat, for example, is often hard to find at a good price without sacrificing quality. Instead of cutting meat out of your budget, use beans, vegetables and grains, such as barley, to bulk up your meals so you can use less meat.
This works great in stews and casseroles, and leaves you enough cash for that nice steak you’re planning on grilling up this weekend.
Brown Bag It
It takes a few extra minutes in the evening to pack your lunch for the next day, but it’s really worth it in the spare change department.
If you don’t believe it, for one week write down how much you spend each day eating out for lunch (five to ten dollars?) and you’ll change your mind really fast (that's $25-50 a week!), guaranteed.
You can pack your own lunch for a couple of bucks, whereas you’ll find it very difficult to eat for less than five dollars when you’re eating out, even at fast food joints (which we don’t recommend anyway).
Are You Shopping Savvy?
Coupon queen or impulse buyer - which is your shopping style? No matter if you're shopping for clothes, groceries or cars, you need to be super savvy if you want the best product at the best value. Find out if you're throwing your money away or if you're taking full advantage of your buying power.