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Here’s how to stop living paycheck to paycheck with ease

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Here’s how to stop living paycheck to paycheck with ease

Stopping the never ending cycle of living paycheck to paycheck is something that can be done within months. As you are inundated with monthly bills that you can’t meet, and borrow to pay for essentials, while postponing payment on others, we examine how you can get out of the situation. Below, we have also outlined the many ideas that we have successfully put into practice to ensure we are not one paycheck away from financial ruin.

Create Goals for Every Month

Planning is an important first step in the path towards saving more every month and getting out of the process of living paycheck to paycheck. A plan can be complicated or simple, but at the very least it should include a goal of saving a specific amount per month, which can be anywhere between a few dollars to several hundred dollars. Accomplishing a saving goal every month, allows you build up an emergency fund which you can utilize if you are unemployed for a short period or switching between jobs.

Setup a Budget for Major Expenses

All of us have major expenses per month, whether it is rent for accommodation or the grocery bill for a family.  These major expenses however need to be controlled if you want to start saving every month. Making a budget therefore, is important and if you don’t already have one it is time to start.

With a budget you can ensure that you don’t splurge on a restaurant trip, have enough to buy required groceries and eat healthy balanced meals. A budget can be something simple as putting an amount of money in a number of envelopes or using a digital tool such as app which can help keep an account of what you are spending. Apps such as Mint can track even the spending that you run up using credit/debit cards allowing you remain within budget every month and save a portion of your paycheck.

Check Spending on Specific Items and Make Reductions

Paying too much for rent per month, or insurance for your car or your health can be draining your money. So take into account these items and others which often result in people paying out additional sums per month without being aware of it. By checking if you qualify for health insurance or car insurance at a lower premium you can save money per month from your paycheck. With more websites and apps available to check the various car and health insurance providers available you can easily find a lower cost option within minutes. The website that offer the best comparison services often have details from several hundred plans and so you are guaranteed the best deal on premium rates.

Automate your Savings per Month

Even if you have only a small amount of money to save per month automating savings with the aid of apps which withdraw money into a separate account is recommended. Automated savings ensures that money goes into an emergency fund or another account which provides more interest per month.

Save Using an Account That Provides Higher Interest Rates

Some savings and checking accounts provide higher interest rates than others and often these do not have hidden fees that you have to pay per month. Additionally banks that only have an online presence have lesser fees compared to other conventional banks. Maintaining savings accounts in such banks allows your money to earn more in terms of interest without you having to do anything extra.

Pay off Loans and Debts

Existing loans and debts on credit cards, often result in people paying hefty interest per month which otherwise can go towards savings. So when you make your plan to stop living based on your paycheck, you need to pay off loans. Additionally credit card debt can consume a substantial amount of your paycheck with sometimes up to 20 percent interest being charged. To pay off debt, you can adopt several measures such as consolidating debt with the help of a large loan. A large loan with a lower interest rate will help your pay off multiple credit cards and increase your savings per month.

Taking online surveys and using tools which provide payouts when you make purchases allows you to earn money even when you are buying items that are part of a sale. With people coming up with innovative ways to save, you will always find something new to help you get out of the pattern of living from one paycheck to the next, and consequently reduce some of the stress in our life.

Finance

Bank of England’s Haldane says inflation “tiger” is prowling

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Bank of England's Haldane says inflation "tiger" is prowling 1

By Andy Bruce and David Milliken

LONDON (Reuters) – Bank of England Chief Economist Andy Haldane warned on Friday that an inflationary “tiger” had woken up and could prove difficult to tame as the economy recovers from the COVID-19 pandemic, potentially requiring the BoE to take action.

In a clear break from other members of the Monetary Policy Committee (MPC) who are more relaxed about the outlook for consumer prices, Haldane called inflation a “tiger (that) has been stirred by the extraordinary events and policy actions of the past 12 months”.

“People are right to caution about the risks of central banks acting too conservatively by tightening policy prematurely,” Haldane said in a speech published online. “But, for me, the greater risk at present is of central bank complacency allowing the inflationary (big) cat out of the bag.”

Haldane’s comments prompted British government bond prices to fall to their lowest level in almost a year and sterling to rise as he warned that investors may not be adequately positioned for the risk of higher inflation or BoE rates.

“There is a tangible risk inflation proves more difficult to tame, requiring monetary policymakers to act more assertively than is currently priced into financial markets,” Haldane said.

He pointed to the BoE’s latest estimate of slack in Britain’s economy, which was much smaller and likely to be less persistent than after the 2008 financial crisis, leaving less room for the economy to grow before generating price pressures.

Haldane also cited a glut of savings built by businesses and households during the pandemic that could be unleashed in the form of higher spending, as well as the government’s extensive fiscal response to the pandemic and other factors.

Disinflationary forces could return if risks from COVID-19 or other sources proved more persistent than expected, he said.

But in Haldane’s judgement, inflation risked overshooting the BoE’s 2% target for a sustained period – in contrast to its official forecasts published early this month that showed only a very small overshoot in 2022 and early 2023.

Haldane’s comments put him at the most hawkish end among the nine members of the MPC.

Deputy Governor Dave Ramsden on Friday said risks to UK inflation were broadly balanced.

“I see inflation expectations – whatever measure you look at – well anchored,” Ramsden said following a speech given online, echoing comments from fellow deputy governor Ben Broadbent on Wednesday.

(Editing by Larry King and John Stonestreet)

 

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Finance

Bitcoin slumps 6%, heads for worst week since March

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Bitcoin slumps 6%, heads for worst week since March 2

By Ritvik Carvalho

LONDON (Reuters) – Bitcoin fell over 6% on Friday to its lowest in two weeks as a rout in global bond markets sent yields flying and sparked a sell-off in riskier assets.

The world’s biggest cryptocurrency slumped as low as $44,451 before recovering most of its losses. It was last trading down 1.2% at $46,525, on course for a drop of almost 20% this week, which would be its heaviest weekly loss since March last year.

The sell-off echoed that in equity markets, where European stocks tumbled as much as 1.5%, with concerns over lofty valuations also hammering demand. Asian stocks fell by the most in nine months.

“When flight to safety mode is on, it is the riskier investments that get pulled first,” Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.

Bitcoin has risen about 60% from the start of the year, hitting an all-time high of $58,354 this month as mainstream companies such as Tesla Inc and Mastercard Inc embraced cryptocurrencies.

Its stunning gains in recent months have led to concerns from investment banks over sky-high valuations and calls from governments and financial regulators for tighter regulation.

(Reporting by Ritvik Carvalho; additional reporting by Tom Wilson; editing by Dhara Ranasinghe, Karin Strohecker, William Maclean)

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Finance

Britain sets out blueprint to keep fintech ‘crown’ after Brexit

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Britain sets out blueprint to keep fintech 'crown' after Brexit 3

By Huw Jones

LONDON (Reuters) – Brexit, COVID-19 and overseas competition are challenging fintech’s future, and Britain should act to stay competitive for the sector, a government-backed review said on Friday.

Britain’s departure from the European Union has cut the sector’s access to the world’s biggest single market, making the UK less attractive for fintechs wanting to expand cross-border.

The review headed by Ron Kalifa, former CEO of payments fintech Worldpay, sets out a “strategy and delivery model” that includes a new billion pound start-up fund and fast-tracking work visas for hiring the best talent globally.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

“This review will make an important contribution to our plan to retain the UK’s fintech crown,” finance minister Rishi Sunak said, adding the government will respond in due course.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance all mean the sector’s future in Britain is not assured.

Britain increasingly needs to represent itself as a strong fintech scale-up destination as well as one for start-ups, it added.

The review recommends more flexible listing rules for fintechs to catch up with New York.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” Swinburne said.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Hugh Lawson and Jason Neely)

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