How to make your money stretch to your next pay day in 10 easy to follow steps

IF If you’re already asking what happened to your last pay packet, you’re not alone.

Millions of Brits are broke before their next pay day.

MEL HUNTER explains how to change things for good.

Many splurge when the money hits their account, with spending up a third the day after people traditionally get paid.

Others are running out each month due to the high cost of living.

According to payroll provider Ciphr, a quarter of workers – 12.5 million people – have been broke before their next pay day at least once in the previous year.

Liz Hunter of MoneyExpert.com says: “It’s all too easy to get stuck in a payday cycle when people spend more right after payday, leaving them with less throughout the month.

“However it happens, payday spending can have a significant impact on our mental wellbeing, and lead to financial difficulties and debt.”

MEL HUNTER explains how to change things for good.

MAKE A BUDGET

Listing your costs will give you a clearer view of how much money you need. Clearly write down all your bills and expenses, as well as any debts to pay, until you’re left with your disposable income. Split this amount up so you have a weekly spending allowance.

Delve deeper by keeping a spending diary, says Simon Trevethick from debt charity StepChange, to spot spending patterns, then build a buffer for unexpected costs like a boiler breakdown.

If you get Universal Credit, you may qualify for the Government’s Help to Save scheme, which will top up your savings with a maximum bonus of up to £1,200 over four years.

CHECK YOU’RE GETTING WHAT YOU’RE ENTITLED TO

Do a benefits check at Turn2us.org.uk to make sure you are getting all the financial support you’re eligible for.

Almost £23 billion goes unclaimed.

PLAN MEALS

It’s one of the easiest ways to cut spending.

Plan for the week and only buy the ingredients for those meals.

It could save you £25 a month on wasted food, cut around £80 on takeaways and impulse food buying and £40 a month on deals you don’t need.

DO

SWAP PURCHASES FOR FREE PERKS

Finding low or no-cost ways to get a boost will leave you with more wonga.

Root out a second-hand bargains or plunder saved-up loyalty perks to give yourself a lift.

Register for birthday bonuses with your favourite stores and restaurants to treat yourself in your birthday month and find out about other freebies. Morrisons is giving out free doughnuts with a hot drink until May 18.

HAVE NO SPEND DAYS

Tapping your card at the coffee shop or quickly buying something from Amazon all adds up.

Set yourself no spend days, or even weeks, resolving only to spend on essentials.

Use up the food in your cupboard, wear the clothes you already own and watch, listen or read something that’s free.

You could even choose to walk or cycle instead of paying for transport or parking.

DON’T SPLURGE ON PAY DAY

According to Vouchercodes.co.uk, Brits spend £3.4 billion on impulse purchases, making many of them on or around payday.

Spokesperson Anita Naik says: “If you find yourself consistently buying things that you regret, try to pause before you purchase. “

She recommends waiting 24 hours to ‘reset’. “You’re left with a clearer head to make the decision.

“Do you still want it? Most people find the urge fades – and they’re left with their money intact.”

DON’T RELY ON BUY NOW PAY LATER

According to Money Expert, around one in six [15%] of UK adults are missing important bill payments to ensure they have the money to meet a BNPL deadline.

Simon says: “People often see it as a payment method rather than a form of credit which has terms and conditions attached. Being interest-free doesn’t mean it’s risk free.

“We’re seeing more people using it for every day essentials when they can’t get credit elsewhere to bridge a gap until the end of the month.”

DON’T MAKE SPENDING EASY

Take saved cards off Apple Pay, Amazon and other online retailers to resist impulse buys.

At the same time, try and direct the deluge of emails about special offers away from your main email account, especially in the week leading up to payday when most of us get a slew of ‘pay day deal’ messages, with retailers urging you to splash your just-earned cash.

DON’T LET BILLS AUTO RENEW

Set aside time to get the best deal on your bills.

Liz says: “Use comparison sites to see if you could reduce your outgoings. If you do spot cheaper deals, it’s always worth haggling with your current provider.”

Simon also recommends checking if you are eligible for social tariffs for water or broadband, and hardship funds for other bills, as well as reduced council tax for single person households and in other circumstances.

Almost £1.7billion of the broadband support available isn’t claimed, with 95% of households – more than 8.4million – who may be eligible missing out on an average of £200 a year.