How to stretch your paycheque

Date: Feb/2/2009

Ah, your first steady salary! It's what you've been working towards for the past few years. It seems so vast, so impressive, so — steady. But how can it possibly dwindle so quickly?

That may be due in part to some well-deserved splurging (making up for lost spending time perhaps) and in part to the cost of living in the "real world" and the expenses that go with that. But with a little money savvy, you can make your paycheque last longer.

  • Student loans. This is an important expense. It's usually a good idea to pay off loans as quickly as possible to reduce interest payments. However, you'll need to weigh this against other essential expenses and the interest rates you may be carrying on other loans or credit cards. (It's usually best to pay off loans with the highest interest rate first.) Whatever your situation, do pay the minimum monthly amount, and talk to your Credit Specialist if you are having trouble meeting your obligations.
  • Rent. Rent is probably one of your biggest expenses. Consider sharing with a roommate for a couple of years and put the difference towards a down payment on a place of your own.
  • Utilities. Replace light bulbs with compact spiral fluorescents, unplug rechargers and electronics when not in use and program your thermostat to energy saving temperatures at night and when you're not home. You'll be helping save the environment too!
  • Furnishings. When you need a big ticket item, try to save up first instead of putting it on credit. Divide total costs by the number of months you're willing to wait, and put that much extra aside.
  • Dining out. Hold a pot-luck dinner once a month instead of going out all the time with friends. If you rotate hosting duties, your entertainment buck will go even further.
  • Lunches. This is one area where you can rack up big spending — or reap big savings. If you always buy your lunch, try bringing it to work just once a week (leftovers or a sandwich are super-easy choices). Gradually work up to two days and three days. You could save anywhere from around $500 to $3,000 a year.
  • Holidays. It's easy to be frugal all year and then blow it all on holiday gifts or a blow-out vacation. Set a budget ahead of time that allows you to have a good time without a holiday hangover.
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