5 Ways to Start a Savings Plan on a Paycheck-to-Paycheck Budget

If you’re living paycheck to paycheck, putting money into a savings account may seem like an impossible feat. When you’re barely scraping by, how can you afford to put money aside for a rainy day? It may not be the easiest to start a savings plan when living on a paycheck-to-paycheck budget but it’s not impossible.

By building a savings account, you can pay for unexpected expenses and even get out of debt. Here are five ways to save money, even if you don’t have much wiggle room in your budget.

1. Set Savings Goals

Before you can start putting money aside, take the time to create financial goals. Even if your goal is as simple as saving $20 a month, it’s better than having no goal at all. Other common financial goals include saving money towards retirement or even putting money into a short-term investment account. Check out sites like Get Out of Debt to find tons of financial tools that can help you plan a savings goal that not only attainable, but also beneficial to your long term goals.

By setting goals, you have something to work towards each month. Goal setting will keep you on track and make saving a possibility. Once you have goals, write them down or use a budgeting app that can track them for you. To make saving a routine part of your monthly budget, try to set new goals often. This way you always have an objective to reach.

2. Open a New Bank Account

Depending on your bank, you may have to put a certain amount of money into your savings account in order to keep it active. Since this can be impossible if you’re living paycheck-to-paycheck, you’ll want to find a bank that doesn’t have a minimum balance requirement. You’ll also want to look for a bank that doesn’t charge fees.

To make money on the money you save, look for a bank that offers a savings account with a decent interest rate. This way you’ll earn interest as you start saving money each month.

A great option for saving money is an online bank account. These accounts are more out of sight out of mind, meaning you’re less likely to withdraw the money you’ve saved because it isn’t as convenient as a traditional bank.

3. Reduce Your Expenses

Chances are you can make a little wiggle room in your budget by reducing your expenses. There are all sorts of ways to cut down on the amount of money you spend each month. For example, bundle home entertainment services so that you can pay for a cheaper package deal. Another option is to use less energy at home by opening the windows and minimizing hot water usage. As you become more energy efficient, your gas or electric bill is sure to decrease.

Other ways to reduce your expenses include:

  • Eating meals at home
  • Unplugging unused appliances
  • Using coupons when shopping
  • Using public transportation
  • Bundling insurance policies

By reducing your expenses, you will have money left over that you can put into a savings account. A hundred dollars or so each month can go a long way over time.

4. Make More Money

Making more money may sound like a tedious task, but in our digital world, it’s quite easy to give your monthly income a little boost. If you have a few hours to spare each day, there are many things you can consider doing to put more money in your wallet. Online you can become a freelancer, take surveys or even get paid to write product reviews.

You can also offer services like pet-sitting, babysitting, or even lawn care in your community. This is a great way to make money without having too big of an impact on your already busy schedule. Other options to consider include working a seasonal job or selling household items you no longer need.

As you make more money each month, you can put a set amount of cash into a savings account while also giving yourself a little wiggle room.

5. Minimize Spending

In a world of ever-growing gadgets and new clothing trends, it’s quite easy to spend more than we should. If you’re already living paycheck-to-paycheck, one of the worst things you could do is make your financial situation even worse by spending money you don’t have. While there’s plenty of temptation, no purchase feels as good as watching your savings account grow.

Be sure to remove yourself from company newsletters and mailings. The more marketing materials you’re exposed to, the more likely you are to make an impulse purchase.


Saving money isn’t easy, and it’s even harder when you’re living paycheck-to-paycheck. Using these five methods, you can take control of your finances. As you make saving a routine part of life, you’ll feel much more comfortable living on your budget.

If you have any helpful tips for saving money on a paycheck to paycheck budget, leave a comment and share your best advice in the section below.


Unsecured Business Loans Are Increasing in Popularity and Here Are 5 Reasons Why

All businesses need small or moderate capital infusions at one time or another, and an unsecured loan is usually the best way to get this cash. In fact, business loans now total more than $500 billion a year, and more than 90 percent of these loans are for less than $100,000.

Business personal loans were almost unheard of just a few years ago while the world was in the grips of a serious recession. But those days are over now and there are lots of lenders who are ready to help your business. For starters, visit unsecuredfinanceaustralia.com.au. Then, take a look at some of the other available websites that can get your business the cash it needs with as little hassle as possible.

Fixed Interest Rate

An interest rate that never changes no matter what is a great advantage for a business. Not even “fixed rate” credit cards can offer than kind of security. Such loans may claim to have fixed rates, but they can still change at almost any time if the conditions are just right (or exactly wrong, depending on your perspective). Such payback terms make it easy to budget the minimum payment plus a little extra to either pay off the loan earlier or create a cushion.

Lower Interest Rate

Traditional lenders, like credit card companies, have large bureaucracies. That size means inefficiency, and borrowers wind up paying extra. But most unsecured lenders run very streamlined operations. So, they can charge lower interest rates. It’s not unusual to see rates in the high single digits, even for borrowers with less-than-perfect credit scores.

Fixed Repayment Term

Credit cards basically encourage minimum payments. These payments are easy to make, but they needlessly extend the loan repayment time, and that could mean thousands of dollars in additional interest charges. In contrast, most unsecured business loans have three or five year repayment terms. That’s long enough to make the payments manageable, yet short enough to encourage fiscal discipline. Ultimately, that discipline usually means a higher credit score which makes it even easier to borrow money when needed.

The Social Aspect

Many unsecured lenders, especially peer-to-peer lenders like Lending Tree, began as social media apps. They never lost that social feel. So, borrowers can search for lenders with whom they share a connection. For example, maybe borrower and lender are from the same hometown or attended the same school. That shared past makes the process even more seamless, and also usually makes the contract almost like an agreement between friends.

It’s Your Best Alternative

Most people leave secure, nine-to-five jobs when they begin their own businesses. But most banks do not like that kind of risk. They only like sure things, so many lenders only work with businesses which they know can repay the money. So, an unsecured business loan may be a startup’s only option. Without additional capital, your business may never make it off the drawing board. An unsecured business loan could literally bring your dreams to life.

To convert your idea into a moneymaking enterprise, you need additional capital. Or, perhaps you need a cash infusion to meet a sudden surge in demand. Whatever the requirement, an unsecured business loan can be the answer.

5 Quick Tips for Prospective Homebuyers in Canada

First-time homebuyers in Canada have plenty of pitfalls to be careful of when navigating the minefield of real estate purchasing. Those first-timers looking for an efficient guide for homebuyers in Canada should keep these tips in mind when starting the journey. There’s nothing worse than unexpected expenses and other nasty surprises during the process that results in setbacks and buyer’s remorse.

Know What your Budget Can Afford

The primary cause of the 2008 financial crisis in the United States was subprime mortgages, which are primarily targeting first-time buyers who may not realize how much how they can afford. It’s easy to get stars in your eyes when you see that four-bedroom, three-bathroom dream home, but making purchases based on what you want and not what you can afford is a big no-no. Have a budget in mind before you decide on buying a house, so you know exactly how much you’re spending each month. Be sure to account for credit card payments, student loan repayments, and any other monthly expenses that you may have.

Always Get Pre-Approved for your Loan

What you think your budget can afford and what the bank is willing to loan to you are two vastly different sums. If you don’t get pre-approval for your mortgage before you start looking at houses, you’re wasting the time of everyone involved in the process. Mortgage loan approval is highly dependent on your income and credit score, so be sure there won’t be any changes to those two things while you’re seeking pre-approval for a loan. Mortgage loans have been known to fall through at the last minute if a person’s financial situation changes in any way.

You’re Not Going to Get Everything on your Checklist

First-time homebuyers go into house hunting with a massive checklist of must-haves for their new home, which often results in frustration for the real estate agent and their customer. Be realistic about your expectations and realize short of building your own home to your exact specifications, you’re probably not going to get everything you want on your list. It’s helpful to make a list of the absolute must-haves and then consider everything else you may want as a bonus. Be willing to compromise with your first home buying experience; otherwise you could end up renting for far longer than you anticipated.

Additional Expenses Will Pile Up

Homeownership seems appealing when you consider how much money is “thrown away” by renting, but it comes with more responsibilities and more costs that first-time buyers usually don’t consider. Property taxes, home insurance, house repairs, and other unexpected expenses can add up so consider saving some of your initial mortgage loans to cover these costs during the first few years in your new home.

Never Buy a Home You Haven’t Had Professionally Inspected

This point is pretty simple; if you haven’t had a home professionally inspected by an inspector you’ve hired, do not buy the home. It’s easy to fall in love with the layout and location of a house and ignore the faults it may have. Be able to keep your feelings in check and listen to an inspector. That beach home might be in your dream location, but if it has a cracked foundation, you’re in for a world of financial pain.