How to Stretch Your Paycheck Each Month


Everyone knows how to find ways to make more money. You can work extra hours or find a new job that pays better. But what about increasing the amount of money you make from your current income? There is a straightforward way to do this: you need to save more of your paycheck.

The average United States household earns around $54,000 per year. Most people would like to save more money, but very few do. They often make this small amount of extra money in savings too quickly. They spend it on things they want or need, and then they find less money than before from their paychecks. It leads to people feeling stressed out and overwhelmed by the number of things they must buy monthly.

Table of Contents

How to Stretch Your Paycheck Each Month

1. Estimate how much money you will spend each month. It is not just a grocery list of items you want, but it also includes the utilities and bills you need to pay. Some people even estimate the cost of their lunch at work to save them money! Think about how much you spend each month. Make it as accurate as possible by adding your spending for all categories for one month.

2. Add an amount for discretionary spending. It includes anything from eating out to buying clothes and other unnecessary goods. It is essential to add this category. Otherwise, you will spend all your “savings” on unnecessary items, leaving you with nothing at the end of each month.

3. Subtract your total expenses from your income. You will see how much of your paycheck will be left over each week and how long that money will last until the next paycheck comes in.

4. Think of how much you can save each month. Put the number you use in step 3 into your bank account. It is a good start if it equals or exceeds the amount you spent in step 1.

5. Look at your savings and spending totals each month and see if they add up to the same amount every month as they should be if this is working correctly. If they do not, it is time to make some adjustments.

6. Subtract your savings amount from your discretionary spending amount in step 2. It will leave you with the difference between your savings and your spending. It is how much you can change each month to make more money.

7. Pick one category with the most significant difference between what you spend and save, then work on that category first. For example, if you spend $2,000 on groceries each month and save $400 each, you should work on cutting your grocery spending.

8. Start by cutting one category with a big difference in spending and savings each month. You can keep trying new things to see what works best for you.

How to stop living paycheck to paycheck? If you see that most of your paycheck is going towards bills or other expenses, you have to do something about it. You need to take these steps to make extra money each month by cutting down on unnecessary spending. Soon enough, you will be able to save money and reduce your stress levels simultaneously.

Corey Odell
Hi, my name is Corey Odell and I am a writer and a freelancer. I wrote a lot of articles for different companies, and is one of them. Check out for the Latest business ideas about finance, markets, and business strategy around the world.

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