In this work, you will learn how to stop living Paycheck to paycheck. What does it even mean to live paycheck to paycheck? It simply means that you are always running out of cash before your next salary or paycheck. It also means that you take out payday loans, cash advances or you frequently borrow from friends before month end.
Do you know that according to a 2015 CareerBuilder survey, 61% of workers say they live paycheck to paycheck. What can you do to stop this kind of living?
The Disadvantage Of Living From Paycheck To Paycheck
This kind of living leads to serious credit card debt. The individual will have no savings or investment. It is a situation of heavy financial bondage. The debt may reach a stage that you cannot even afford the minimum payment. Once this happens, you will not get approval for a credit card or borrow.
How To Stop Living Paycheck To Paycheck : What Can You Do?
Make Wise Financial Decisions
Decide properly on how to earn and use money. What are your wants and needs? Can you afford your wants? If you are not guided on this, you will make a lot of mistakes financially. The mistakes may take you years to correct.
How To Stop Living Paycheck To Paycheck : Make A Budget
A budget is a list of your monthly expenses based on your income. It is only a budget that can make you live within your means. Once your expenses fall within your income, it means that you are not living from paycheck to paycheck.
How To Stop Living Paycheck To Paycheck : Live Within Your Means
Living within one’s means is not easy, You may have to sell one car to reduce fueling or cut down on entertainment. You can even buy less expensive items to make some adjustments.
You can work an overtime or get a second job. A lot of people turn their hobby into a source of income. You can get a tax refund to change your tax withholding and get more money in your paycheck monthly.
Track your spending
Tracking your spending will make you to understand what you are spending on. You just have to save the receipts for all your purchases. Categorizing them will enable you know where you are spending more and if it is worth it.
Even if you find other sources of income to add to what you already have, it won’t stop you from living from paycheck to paycheck. It is discipline that will make you spend money wisely, live within your means, track your spending and not to borrow money.