Living Paycheck to Paycheck – An Introduction
Being short on money for food, unable to fill up the car tank, and stressing over yet another bill that appeared in the mailbox is a crisis for countless people in America and abroad. The cost of living increases every year and monthly expenses continue to rise as financial freedom, and financial goals slip from the grasp of many.
If you are one of those people, then you know how stressful it is to worry about paying your bills, rent, food, and other living expenses. What’s worse is the seemingly tangible fear of encountering a financial disaster at any moment.
If you lose your job, get in a car accident, or have a major medical surgery, will you have the needed money to survive?
You can forget about saving up a million dollars for retirement or going on a vacation, when even putting your kids through school and paying off your mortgage almost seems unreasonable. Heck, you’re probably just ecstatic if you have leftover money at the end of the month. Saving up for rainy days is the last thing that comes to mind when you simply don’t have any money left.
Living a paycheck to paycheck life is rough. Is it actually possible to get out of that financial slump? Can you break the incredibly strong bands of this cycle?
Yes you can!
With some careful planning, financial education, and these five financial tips, you can break out of this powerful downward spiral and learn how to stop living paycheck to paycheck.
Fix your money problems by implementing these tools to succeed:
How to Not Live Paycheck to Paycheck
Step #1 – Look at Your Priorities
First, start by looking at your priorities. Ask yourself these questions:
- What am I actually spending my money on? Do I actually need the smart phone or internet?
- What am I spending my money on that just isn’t helping my financial wellness?
- What matters most to me, regarding to what I’m spending money on?
If you are struggling to make ends meet, this is the place to start. Look inside yourself and find out what your priorities are when it comes to life. Let the money follow those priorities.
If you are already living a “bare-bones” lifestyle where you only have enough to pay for rent, food, and clothes (without anything else), then you really just have an income problem (see step #4). But a lot don’t actually fall into this category. A lot do have money and wiggle room in the budget… but they are spending it incorrectly.
Step #2 – Implement 3 Specific Things into Your life
Where does all your money go? It’s time to find out! These 3 specific things will provide financial help and let you see the bigger picture and form a realistic game plan to get your finances in order. Living on less money doesn’t always seem fun… but it’s a necessity for now. Here are the 3 parts to your “financial fitness” plan, so to speak:
Item #1 – A Budget
If you want to know how to budget your money, check out this article to improving your financial prowess through budgeting.
Item #2 – A Savings Plan
If you want tips to save money check out this article to unleash your savings plan.
Item #3 – A Debt Destruction Plan
If you want to know how to pay off debt fast, check out this article on creating a debt destruction plan.
Step #3 – Pay Yourself First
One idea to boost yourself out of the financial problems you find yourself in, is to pay yourself first. We all have daily expenses, but a lot of the money issues you have currently having come from spending money on things that you shouldn’t in the first place.
In theory…if you don’t have the money in the first place, you can’t spend it where you shouldn’t. That’s harder said than done, but this should help.
Start setting aside a percentage of your pay when the paycheck comes. You can set an automatic transfer to a savings account, or you can go to the bank and do it yourself. You might miss the money at first, but you can’t spend the money that you don’t have. Your savings account should be under “lock and key”…meaning that you don’t touch it unless you have a serious financial emergency.
Step #4 – Pay for Everything Else Second
Now that you have paid yourself first, everything else can get paid. At this point, you should have a budget and savings plan in place, so you have already hopefully cut back on some of the needless spending. If not, this is the stage where you might need to sacrifice a few things here and there, for the greater good.
Step #5 – Consider Boosting Your Income
It’s not about how much you make; it’s about how much you spend.
That is a motto at Power Over Life, that we firmly believe. However, if you are living the “bare-bones” budget or you have mastered the first 4 steps, then it’s time to start boosting your income.
Your ability to earn in unlimited.
Find a part-time job that won’t be as stressful as your first one. Ask your boss for that much needed raise. Start an online venture or do odd jobs for your friends and relatives. The options are truly endless.
Final Thoughts on Living Paycheck to Paycheck
The average cost of living continues to rise, creating financial hardships for many. If you are tired of living paycheck to paycheck, these five tips are for you! You now know how to solve financial problems in your life. Use these financial planning tools to help you break out of this downward spiral and get your life back!
Completing these five steps might require a bit of a lifestyle change. Plug the money drain on needless expenses and get on a written plan for yourself!