Stop Living Paycheck To Paycheck
This economy is not the best and with health insurance rates increasing, it’s probably hard to find any “extra” money left over at the end of each month. CNN Money reported that 76% of Americans are currently living paycheck to paycheck. That means there’s no money left over for emergency savings, college funds, rainy day funds, etc.
It’s recommended to have at least 6 months of expenses in a savings account. This should be enough to help with the loss of a job, a medical emergency or some other unexpected event. However, according to a survey released by Bankrate.com, fewer than one in four consumers have that amount of money in their savings.
If you are living paycheck to paycheck, then you can rest assured that you’re not alone. You could find yourself in serious trouble if an unexpected expense came up. Fortunately, there are several things that you can do to get yourself back on track financially.
Below are some tips that will help you to STOP living paycheck to paycheck:
Get yourself on a budget:
Many people would be able to stop living paycheck to paycheck if they got themselves on a budget and stuck to it. That is why you should create a household budget right away. Start by writing down your monthly income and all of your monthly expenses. After that, you will need to subtract your monthly expenses from your income. If your income exceeds your monthly expenses, then you are making enough money to support yourself. The reason you are probably living paycheck to paycheck is because you are trying to live above your means. Use this free online tool to help you create a budget. It’s fast and easy to use, and it will give you an overview of your current financial picture.
Find ways to trim your expenses:
If you are like a lot of people, then you are probably spending money on things that you do not necessarily need. You will be surprised at how spending a couple of dollars unnecessarily could put a hole in your pocket. There are several ways that you can reduce the amount of money that you spend. For example, you can get rid of cable and get a Netflix subscription for only $7.99 a month. You can cook at home instead of eating at a restaurant. You can get your morning coffee at home or at the office instead of going to that expensive coffee shop everyday.
Excess debt is one of the many reasons why many people are living paycheck to paycheck. If you find ways to trim your expenses, then you will be able to put the extra cash towards paying off your debts and then building up your savings.
Increase your income:
If you feel like your current income is not enough to make ends meet, then you should find ways to increase it. For example, you may want to take a part-time job on the weekends if you have the time. You can also use your talents to bring in extra income.
Living paycheck to paycheck is dangerous, but you can break this cycle by getting yourself on a budget, increasing your income, and trimming your expenses. It won’t be easy at first, but it’ll be worth it in the end.