Tips on how to make your money stretch the entire month

piggy bank

Hello Dear Reader,

Do you find yourself counting down the days (or maybe even hours!) until payday? Sometimes our pay packets can’t come soon enough, especially if we’re faced with paying for an emergency such as a broken down car, bill from out of the blue or home repair.

Indeed, that’s why many people panic and turn to payday loans. These are short-term financial products that carry a big interest rate and, therefore, if you don’t know what you’re getting yourself into you could end up paying a lot back (see this guide for more details).

Ideally, you’d avoid the need to turn to such an expensive form of lending in the first place. If you can make your money stretch the whole month, you’ll avoid that pre-payday panic and the need to borrow at eye-wateringly high interest rates. But, how can you do this? Here are some top tips to take on board:

Have a spending audit

How much money do you spend every month on essentials such as your bills or groceries? Until you know this you’ll find it difficult to accurately plan out your finances. Go back through your last three bills and make a note of every regular expense you have. This should give you clarity in two ways: you’ll know how much money you have left over after all of the essentials are paid for and you’ll be able to note when all of your bills come out of your account.

Look to cut your regular spend

After you’ve done this, you should look to see if there are any ways to improve the way your finances look. Could you cut any of those bills by switching to another provider? Are there any subscriptions or memberships that you could axe completely? (As a nation we waste a lot on gym memberships). Any money you can save here will free up extra cash to boost your spending pot for the month.

 Split your cash into a weekly spending limit

Once that’s all done then it’s time to split your disposable income into four equal chunks. This should give you a weekly spending limit and help you to avoid blowing it all on shopping or meals out in the first week of the month. Clearly, life isn’t always as neat as that but if you over spend in the first week then you should adjust your weekly budget from there so that you know to rein things in for the rest of the month.

Create a rainy day fund

What if things go wrong? No matter what you plan, something can always come along and throw you off course. That’s why it pays to have a rainy day fund. Set aside a little pot of money that you can easily tap into – maybe in an easy-access savings account – and turn to this if an expense comes at you from out of the blue. Even a small amount could be extremely useful and lessen the blow. If you’ve ever got a little bit of your spending money left at the end of the month it makes sense to pop this in your rainy day fund so it will help to ensure your money stretches further in months when money is tighter.

Keep a calendar of big events

Some things really shouldn’t be a surprise to us. Birthdays of family and friends, for example, or wedding anniversaries happen on the same day each year yet how many times have you forgotten until it’s too late and then be left short of cash? Put these dates, along with that of Fathers Day and Mothers Day into a calendar along with any other key events that you need to be aware of, so that you can plan ahead.

Learn how to use your overdraft

Spending more money than you have in your current account can prove costly if you’re not careful. However, an agreed overdraft limit with a bank that has low fees and charges for this can ensure that your overdraft offers you something to dip into in an emergency. As long as you appreciate that an overdraft is a form of debt – and understand the cost involved – this could be a part of a sensible money management plan. This is best used for short term necessities and is not best when used repeatedly but can be very useful when used to your advantage.

Here’s just a few ideas from me, but feel free to add some more yourselves. I love hearing from you all.

Until tomorrow,

Love Froogs xx

Sponsored post – as usual, all my opinions are my own.

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17 thoughts on “Tips on how to make your money stretch the entire month

  1. Hi froogs, I’ve been waiting for today and it’s finally here. I’m mortgage free!!! Paid last ever payment today can’t believe it.
    I’ve been following your blog for couple years quietly just plodding along chipping away at debt. Thank you for sharing your story and taking the time to blog. It has certainly changed my life. Not fully where I want to be but getting there quicker thanks to your fantastic blog. Sorry, post wasn’t meant to be this long! X

    Liked by 3 people

  2. These are great tips, thanks for sharing! I think the biggest thing is the “regular payments” you’re referring to. The fixed expenses are what typically creates the chronic high over-head. I know of so many people who have gym memberships they’ve been paying for years and years, but they never go! Makes absolutely no sense at all.

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    • My eldest son got sucked into a gym membership when he started university. By the end of Fresher’s week he and his new friends had been duped into paying thirty pounds a month for three years unlimited gym use at a well known gym. They were told they had signed up to pay ten pound a month with the option of cancelling the membership at any time, when actually it was only the first month for ten pound and then thirty pound a month after that. The gym refused to cancel the agreement and said that they were sorry that the my son and his friends didn’t realise that it cost thirty pounds a month after the first month, but there was nothing they could do about it. It was only when we got a solicitor involved who proved the gym had been deceitful did we get his (and his friends) money refunded. Gym membership can spell disaster for some people.

      Liked by 1 person

  3. This possibly sounds a bit mad, or over the top, but what works for me is to check my bank balance at the end of each day and then I know exactly where I am with all incoming and out going money. I find it a good way to curb spending. This way I can easily ignore supermarket offers and buy only what I need rather than get swayed by their prettily packaged deal of the week. I prefer to keep money in my account rather than spend it on something I don’t really need.

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  4. I’m always good at making the money last till the end of the month saving any left over from “being careful” but my husband is self employed and it looks like this month he will not earn enough to cover all of next months bills so my superscrimper skills will have to come into force with school hols and new uniform to buy and unless some work comes on we’ll have to cut right back to get through the month without touching our savings they are a last resort . I have already decluttered and list items on eBay and gumtree , relisted stuff from last week , stock checked the freezer and cupboards and looked for some free things to do for the kids ( quite a lot if you really look) , I feel lucky I have a veg patch so have some fresh food growing and chickens so eggs are plentiful too but we haven’t had a month like this for years and I am keeping my chin up as best I can …………..

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  5. Have you ever heard of the concept of paying yourself first? This means that no matter how meager your pay is, the first thing you do is sock a bit of it into a savings account. That way, you get into the routine of saving, even if it is only a few pounds at a time. This works for me. I also began a notebook of expenses and have begun looking for ways to cut my expenses that are not fixed. I check my bank balance often and money after bills goes into savings.

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  6. We have savings accounts for emergency care repairs, and we also pay our insurance every six months. The fee for paying monthly is $3.50, which isn’t much but it adds up. We also pay homeowners insurance once a month instead of monthly, also saving the $3.50 per month. For both, we save $84.00 per year in monthly billing fees. It is hard to pay those big bills, but we save each month and just take it out of savings when the bills are due.

    The first thing to do is get out of debt, and then it is easier to put money is savings on a regular basis.

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  7. In 6 weeks time my house will be mine!.
    5 years of no fancy plan!. Just every single penny I could was put to it!. 14 years early house will be mine.
    Every pound thought out, how can I get most from it!.
    No spreadsheets, no writing down of anything, more just if I don,t spend a pound game, it can go to mortgage.
    Worked for me!.
    Do love online banking, watching even 10 p come off, smaller amounts are bizarrely more satisfying!.

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    • Congratulations! I totally agree with you, online banking can be very satisfying when you see those pennies adding up. We used the same method as you to pay our mortgage off early – no written plans, just saving every penny and putting towards the mortgage payments. We manage to pay ours off ten years early, but fourteen years early is fabulous – well done, you – all that squirrelling pennies away has paid off big time 🙂

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