Surviving from payday to payday? Here are 3 tips to help you break free.

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When every euro you earn seems to get eaten up by expenses and you are surviving from payday to payday, it can sometimes feel as if you’ll never break free. This is especially true in these difficult times, but it’s still possible to get back control of your finances and plan for the future.

1. Write it all down

The most valuable thing you can do to get on top of your expenses is also the simplest - write everything down.

Write down a list of all the things you absolutely need to spend money on, and what they cost each week or month. Things like mortgage or rent payments, gas, electricity, broadband, food and transport. Your aim is to work out exactly how much income you need to pay for all these essential expenses.

2. Make a date with your wallet or purse

Now you’ve put a figure on what life’s essentials cost you each week or month, you can take a look at your last 6 months and work out the cost of the non-essentials.

Can you make cuts to your non-essential spending or boost your income?

To keep on top of your money, you need to schedule ‘budget time’. Set time aside (at least once a week) to sit down and check how much you’re spending and what you’re spending your money on. Put it in your calendar or set a reminder on your phone.

Then you can more quickly see if you are going off-budget - and can correct things quickly.

3. Make saving automatic

Life’s money emergencies - a broken washing machine, a boiler that breaks down or a couple of months between jobs – often happen when we least expect them.

Setting money aside in a ‘rainy day’ fund can help us survive them without having to borrow money. How much do you need to put away? Ideally, enough to cover the cost of 3 months’ essentials. So if your rent or mortgage, utilities and food etc. cost €1,000 a month, you’ll need €3,000.

This may sound daunting, so take it one step at a time. Aim to save €1,000 first. Set up a direct debit to pay money into a deposit account or a regular saving account. You can start from as little as €25, a month - the most important thing is to start. You can find more about Bank of Ireland saving accounts here.

Disclaimer

Life assurance and pensions products are provided by New Ireland Assurance Company plc., trading as Bank of Ireland Life. New Ireland Assurance Company plc., trading as Bank of Ireland Life is regulated by the Central Bank of Ireland.

Advice on Bank of Ireland Life products is provided by Bank of Ireland, trading as Bank of Ireland Insurance & Investments. Bank of Ireland trading as Bank of Ireland Insurance & Investments is regulated by the Central Bank of Ireland.

Bank of Ireland is a tied agent of New Ireland Assurance Company plc trading as Bank of Ireland Life for life assurance and pensions business.

Members of Bank of Ireland Group.