Help. I’m well into my 30s and seem to be living from payday to payday. I’m barely paying bills
and can’t seem to save any money at all. What is the best way to try get my finances in order?”

Living payday to payday is a common challenge for many in their 30s. It can feel like a tightrope walk, with little room for unexpected expenses or savings. Gaining control over your finances in your 30s requires smart budgeting and proactive planning but with the right approach and a bit of discipline, you can transition to a more stable financial footing. Here are some tips are aimed at helping you develop a more sustainable financial lifestyle, reducing the stress and laying the groundwork for long-term financial health.

1. Budgeting and Tracking Expenses

One of the first steps to stop living payday to payday is to create a realistic budget. Track all your expenses to understand where your money is going. Once you know your spending patterns, you can identify areas to cut back.

2. Building an Emergency Fund

Start setting aside a small portion of your income for an emergency fund. This fund is crucial in breaking the payday-to-payday cycle, as it provides a cushion for unexpected expenses, reducing the need to borrow or use credit.

3. Paying Off High-Interest Debt

If high-interest debts are part of your financial picture, prioritize paying them off. These debts can keep you trapped in the payday-to-payday cycle due to the additional interest burden.

4. Seeking Additional Income Sources

Consider ways to increase your income. This might include asking for a raise, switching to a higher-paying job or starting a side hustle. Additional income can help in easing the strain of living payday to payday.

5. Automating Savings

Set up automatic transfers to your savings account. Even a small, consistent amount can build up over time and help you move away from living payday to payday.

6. Reducing Unnecessary Expenses

Evaluate your spending and cut back on non-essential expenses. This might mean dining out less, cancelling unused subscriptions or finding more affordable alternatives for leisure activities.

7. Avoiding Lifestyle Inflation

As you start earning more, be mindful of lifestyle inflation. Avoid increasing your expenses every time your income goes up. Instead, channel the extra funds into savings or investments or a pension.

8. Seeking Professional Advice

If you feel overwhelmed, consider seeking advice from a financial advisor. They can provide personalised guidance to help you move away from living payday to payday.

Finally

Living payday to payday in your 30s can be stressful, but it’s not a permanent situation. By implementing these tips, you can start to take control of your finances, build a savings cushion and pave the way to a more financially stable and independent future. Remember, the journey to financial freedom is gradual, and every small step counts.

with Philip Cullen of Southeast Mortgages & Financial Services
This article aims to give information, not advice. Always do your own research and/or seek out advice from a Financial Broker before acting on anything contained in this article.

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