Let’s face it, we’ve all been there. The calendar is mocking you with its relentless countdown to payday, while your bank balance is laughing in your face. You’re left wondering how you’re going to survive until that glorious day when your account is replenished. But fear not, because surviving until payday doesn’t have to mean living on instant noodles and tap water. With a little creativity and resourcefulness, you can make it through this financial stretch without sacrificing your sanity or dignity.
The Payday Countdown
Living paycheck to paycheck is a harsh reality for many Americans. Even those with six-figure incomes often find themselves unable to save significantly. Life is expensive, and unexpected costs are as predictable as a horror movie jump scare. So, what can you do when you’re running out of money before your next payday?
A survey by The Penny Hoarder found that nearly 60% of people cut spending in an effort to save money before their next payday. About 36% use credit cards to survive the crunch, and over 36% dip into their savings. While these are all viable options, some make more financial sense than others.
Reviewing Your Spending Habits: The First Step to Financial Survival
If you find yourself short on cash before your next payday, the first thing you should do is review your spending habits. Create a budget; factor in all of your income and expenses. Print out your last few months of paychecks, as well as bank and credit card statements. Make a list of critical bills that you must pay each month, such as your rent or mortgage, car loan, and utilities. Now categorize your other spending into things like entertainment, apparel, health care, education, etc. This will help you understand where your money is going each month and where you can cut costs.
Your housing, food, and transportation costs are a given. Unless you are planning to downsize, these are more or less fixed costs that need to be paid first. However, other areas such as entertainment and clothing purchases may need to take a backseat for a while to get you to your next paycheck.
Increasing Your Income
Once you have prioritized your spending, see whether you can increase your income. Consider getting a side hustle such as tutoring, food delivery, pet-sitting, or selling your stuff. Think about what you could offer a company or an individual, such as social media management or personal shopping.
If you have been with your employer for at least one year (in some cases, six months), consider asking for a raise. Do your research and make a compelling argument for why you have earned the increase in salary. Have you recently taken on more responsibility or accepted a new position? What do you offer to the company that makes you a valuable asset?
Seeking Relief Programs
Once you have reviewed your spending and looked for ways to increase your income, see whether you qualify for any relief programs. You may be able to ask for a deferment on your student loans or may be eligible for assistance with your utility bill. There are state and federal programs available depending on your income.
If your money woes are temporary and you have a rainy day fund, now is the time to use it. Once you are in a healthier financial state, you can repay yourself and build your savings back up.
The Final Step to Financial Survival
You can always put money on your credit cards; just make sure you at least pay the minimum on all of your cards, or your credit could take a hit. While this fix is not a long-term solution, it might help you get through a rough patch. It doesn’t hurt to look around too for better rates and 0% balance transfer offers, 0% intro APR, and cash-back incentives. Just remember: Credit card debt is easy to rack up and very hard to pay off.
Finally, other not-so-advisable options may include payday loans, layaway (“buy now, pay later” programs), or borrowing from friends (unless you know you can pay it back).
If you are like many other Americans and find yourself living paycheck to paycheck, just know there are innovative ways to stretch your money and stay on budget — without having to win the lottery.