HOW TO STOP LIVING FROM PAYCHECK TO PAYCHECK – A Realistic Approach

 

If you’re living paycheck to paycheck, that means all your money comes in and goes right back out again by the end of the month. That might not seem so bad at first. You’re staying on top of bills after all, right? But if that’s all you’re doing, there’s no way to look to the future—because you can’t afford to save any money yet. And there’s no real security with your money today. One little “life happens” moment can bring it all crashing down. And we don't want that now, do we?

 

Hey, if that’s you, you’re not alone! Alot of workers live paycheck to paycheck.  But if you’re stuck in this cycle, you don’t have to stay there. Seriously! Don’t settle for the “not so bad.” Time to move away from that. You’ll get extra breathing room with your money and gain security like you’ve never known.

Here is how to go about it:

 

TRACK YOUR SPENDINGS

Work Out What You Spend Your Money On

When you’re living from paycheck to paycheck, you feel you don’t have spare cash. You probably have more wiggle room than you think you do. For the next month, record everything that you spend your money on. 

Create a paycheck to paycheck budget planner list of everything you pay for, including debt and rental. Look up how much interest you pay on your debt and your outstanding balance. Record these in separate columns. 

You can easily spend way more money than you have if you don’t maintain a budget and track your purchases. That’s why it’s important to go over your bank statement from the last few months when you prepare a budget so you don’t end up broke and struggling. It’s a great first step to identify your spending habits and where to improve.

Don’t forget to plan ahead for larger expenses, like birthdays, holidays, and annual dues. Mark these expenses in a calendar and consider where you can cut back on that month’s expenses. 

CUT AS MUCH COST AS YOU CAN

Once you’ve looked at where you stand within the 50/30/20 rule, and have a full understanding of your spending habits, then you can get to work trimming down your essentials and wants to begin saving. 

Call your service providers, ask about their service plans and payment options to determine if there’s a better option that meets your needs. You may consider changing providers for a better deal, or even to help you negotiate with your current provider. 

Buckling down for a few months will be hard, but it will be a huge relief once you come out with some money saved and your debts paid down. Plus, it can save you in the long run from high-interest costs.

Look for more things to cut-

If you’re living paycheck to paycheck, this isn’t the time to buy T-bone steaks for dinner, take a fancy vacation, or visit your favorite restaurant. This is the time to cut spending. Look for any area in your budget where you can spend less.

Cut cable. Call your internet and phone providers to downgrade or stop your service for now. Go to the library and parks instead of spending entertainment money. Stop eating out. (Yes, we said it!)

We know making sacrifices like this doesn’t feel good. It hurts! But keep reminding yourself: This is not forever. You’re making temporary sacrifices. It’s time to put in the work now so you can be in a better position in the future.

 

START AN EMERGENCY FUND

Let’s talk emergency fund. First things first, you need a starter emergency fund. You might wonder why the heck you need to save right now if you’re busy just trying to make ends meet. But guess what? Knowing you have this buffer between you and life will bring you so much peace. It’s your safety net for those “life happens” moments. If you get into a jam, you can pay cash without worrying about which bills you’ll have to skip this month to cover things.

Listen: You absolutely can save up money—you just have to make small (but intentional) daily, weekly and even monthly changes. And it will be totally worth it.

 

GET AN EXTRA JOB OR SIDE HUSTLE 

If you’ve set a budget and sold some stuff, but you still can just barely make ends meet, you might need a steady way to increase your income. Find a second job or side hustle.

Some great options for making extra money are waiting tables, driving for Uber or Lyft, being a barista, working at a call center, or signing up to be a substitute teacher. There are even plenty of work-from-home jobs you can do after hours or on the weekend too.

Yes, it will be hard. But this is only for a season. Once you get some money in savings and debt out of your way, you can slow down again

CREATE A MEAL PLAN

Food takes a huge part of one's income. You’ve got to eat. And it can get out of control if you aren’t careful. When you meal plan, it’ll help you avoid the temptations of the drive-thru because you know what’s for dinner back home. Plus, you’ll get to track your meal and eat better and even healthier

LIVE FRUGALLY

This is also an option to reduce your expenses every month, it's choosing a lifestyle that requires minimal maintenance and upkeep. When done right, you not only get to live below your usual budget, you get to retain money an have savings. 

Note, living frugally does not have to be living without enjoying the good things of life, instead, it's finding ways to enjoy the good things of life on a cheaper scale.

KEEP TRACK OF YOUR INCOME TODAY AND MAKE SURE YOUR NEXT PAYCHECK GET TO BE A LASTING ONE. STAY FRUGAL!