The financial situation in Canada has become so dire that there are entire households that owe more than the country’s total GDP! Unfortunately, many of us have to live paycheck to paycheck and it’s hard to survive in such a scenario. But all hope is not lost and even on a tight budget you can save money and make it through.
This detailed guide will show you how to survive while living paycheck to paycheck in the current Canadian economic situation.
Here’s what you should do:
Set Aside Money Each Week
Your first step should be to set aside a small amount of money each week. This is tough to do when you’ve got a small budget but you have to be disciplined enough to do it.
If possible, try to save at least 10% of your paycheck each time you receive it. Save as much as you can, but try your best to never go below this amount.
If you don’t get paid each week, you can set aside a fixed amount each week. Perhaps you can try to save between $75 to $150 at a minimum per person in your household.
Make sure you check out our guide on how to start saving money. Keep your money in a savings account and don’t use it unless there’s a major emergency.
Make Small Lifestyle Changes
The bad news is that you’ll have to cut down on some of your lifestyle choices when you want to save money. The good news is that the changes don’t have to be drastic.
For example, do you have any subscriptions that you don’t need? Most likely, you can unsubscribe to most, if not all, of your magazine subscriptions.
If you love watching Netflix but don’t watch it often, you can freeze your account for a few months at a time.
If you eat out often, try to cut this down. Often, going to restaurants is much more expensive than staying in and cooking for yourself.
Keep track of how much money you spend on your lifestyle. Try to cut this down by at least 20% if you can. If you still struggle, there might be some fun things you’ll have to cancel altogether.
Don’t worry, this too shall pass. You can always resume your normal lifestyle later. Right now, you need to focus on saving money and surviving until you become more financially stable. This leads us to our next point.
Increasing Your Income
You might have come across some ridiculous financial advice suggesting that the way to wealth is to save $5 per day instead of buying coffee at Starbucks or Tim Hortons!
But the proper thing to do is to brush up your resume and start seeking more opportunities.
Due to the pandemic, economies all over the world have taken a turn for the worse. The cost of living in Canada has increased and for many of us, our salaries can’t keep up.
Now’s the time to either make a career change or seek a second job or freelance opportunities. Start small first. Perhaps you’ll only need $1K to $2K extra each month to have more financial stability.
Use your extra income to save money rather than spend it. With this extra source of income, you should aim to spend no more than 20% each week. This amount should only be spent on basic necessities such as your rent, bills, food, etc.
Paying In Full
It’s become normal in our societies to get into debt for almost everything. When one lives paycheck to paycheck, getting into debt becomes standard.
However, you want to try your best to pay off your debt as often as possible. Try your best not to get into more debt. Some people go to extreme lengths of cutting up their credit cards.
This isn’t something you should do just in case. However, you want to reduce your dependence on your credit cards as much as possible.
If you do need to pay with a card, try to pay with a debit card. This ensures that you immediately see your remaining bank balance. If you do have to use a credit card, always pay on time. Make sure you avoid late fees and try to avoid paying in installments.
Consider Financial Assistance
No matter what, when you live paycheck to paycheck, there might always be a time when you’re strapped for cash.
You might not be able to save or earn enough to cover your costs. In such a scenario, you want to consider applying for financial assistance. This is when you can start looking at fast loans and short-term loans.
There are many online loans you can apply for with little hassle. You’ll have to inform the loan provider of your financial needs. Each loan provider will have different requirements to qualify for a loan.
For example, you’ll likely need to show proof of a local bank account. You’ll have to prove you have a steady job and show proof of income. Afterwards, your application will be reviewed and you’ll receive a response.
Don’t be intimidated about applying for these fast loans in Canada. The application process is simple and short. These loans can help you pay off any debts or your regular bills.
The loans will also have favourable options for you to pay them back. You’ll have considerable time to pay back your loan and with minimal interest. For many Canadians, loans are a last resort. But in some cases, these fast loans might be the best resort.
Survive Paycheck to Paycheck
Now you know how to survive paycheck to paycheck and how to deal with a tight budget.
Your first step should be to save money. Set aside money each week and only spend it if necessary. You’ll also have to make small lifestyle changes to cut down on your costs.
You should also consider a career change or freelance gigs to earn extra income. Make sure you honour your debts and avoid getting into future debt.
If you’re still in a pickle, not to worry! Eastern Loans can help you secure a fast loan. Check out our online application!