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Do you feel like you’re in an unending financial crisis?
Living from paycheck to paycheck is no fun especially when you have goals that you want to accomplish and can’t because you don’t have any money.
This type of lifestyle is BONDAGE! The painful thing is that many people never really experience freedom and if they do it’s sometimes too late.
A recent survey shows that 59% of U.S Adults are living paycheck to paycheck.
After today, this is won’t be any of us!
You may be wondering what living paycheck to paycheck really means.
The fact that you’re on this post or even wondering then it’s quite obvious you’re not at the place you want to be financially.
Living paycheck to paycheck is when you’re using all your income or most of it to pay bills and other expenses that leave you without anything to save for the future such retirement, emergency fund, your kids college education among other things.
I mean, I don’t believe we are on this earth to live a miserable life where we can’t enjoy our hard work money.
My philosophy is that we should be the master of our money and not servants.
The moment that its the other way around, we are doomed if we aren’t already! 🙂
My future plans for the next 10 years are to acquire higher education in the field of Computer Science, learn some copywriting skills, invest, travel to different countries, buy myself home, and support my family, etc.
If I am living paycheck to paycheck, will all those dreams come true?
The point I am trying to get to you is to start making a difference in your finances now if you want your future to be better both for you and your family.
Your future is made up of your past yesterday. So let’s start!
In this post, you’ll find some adjustments you can make to your budget so that you can save and make your money works for you instead of living paycheck to paycheck.
9 Tips To Stop Living Paycheck to Paycheck
Is bigger really better than smaller? Not necessarily but bigger can at times be expensive.
It’s satisfying showing our family, friends, social media peeps our expensive homes, cars and even name-brand accessories.
Take a look at your home, could you possibly downsize it and move to a more cost-effective community (with regards to paying rent).
For instance, you have a house that has 2 bedrooms and 1 guest room with a basement, etc.
Maybe you could get a 2 bedroom with basement and transform the basement into a guest room. So you’re down by 1 room.
If you have more than one vehicle or not using one then you could sell it and put the money towards paying off debt or some sort of savings (like emergency funds).
You’ll do the same for furniture, items that are in the garage that you haven’t used in years, clothing and many more.
You get the gist!
If you planning to downsize your home in order to save money then go here and follow the steps to have a stress free move out day.
Stop Spending Recklessly
Believe it or not, everything costs money. The clothes you have on cost money to the chair you’re sitting on.
With that being said nothing is actually FREE!
But there are times we splurge our money on unnecessary stuff. Based on research it states is that the average American spends approximately $1,497 per month on non-essential items.
In a year’s time that is a whopping $18,000!
And if you don’t change the way you spend your money then this will continue throughout your adulthood.
Imagine if you could put all that money into paying off your student loan.
Now that’s goals!
Some unnecessary items that we buy include coffee, eating out, subscription boxes, impulse purchasing, bottled water (I am super guilty), paid apps, to purchasing lunches.
Yes, all these things may seem worth it but there are cheaper ways to achieve it.
For instance, do meal prepping and carry your lunch instead of buying. It’s really important to assess your spending to see where your money is seeping through your pockets.
Budgeting your money is one of the most important tips on the list.
When you create a budget it will help avoid unnecessary spending and help you to achieve your financial goals.
A budget is where you do a full analysis of your income and expenditure.
Budgeting can be hard and sticking to one can be harder if you don’t know what to do!
Learn how to budget here!
My advice is to create a budget that’s realistic.
An example of an unrealistic budget is if your normal monthly food budget for 4 is $300 and you want to reduce it drastically to about to $150.00. You know within yourself that it will be near impossible to do.
Please don’t set up yourself for disappointment!
You want to find other places to reduce spending that won’t affect your livelihood.
Budgeting will help you save while living paycheck to paycheck and focus on your goals to prevent financial crisis.
Kick Debt Out
Paying off your debt will help you avoid living paycheck to paycheck. You need to stop using your credit cards immediately and use the snowball method to pay off your debt.
The quicker you pay it off the better!
The first step to living a debt-free life is to stop spending more than you make.
If you spend more than you make, you’ll automatically end up using your credit cards.
In the long run, you’ll acquire so much debt that it will be difficult to pay it off.
Create a plan that you’ll stick to pay off your debt in x amount of time with the help of a budget.
This will allow you to save money for the future!
Use The Cash Envelope System
This is the best way to keep your money under control if you love SPENDING!
Using the envelope cash system will help you spend wisely and avoid credit. This is definitely one of the easiest ways to budget your money that is super effective!
How To Create an Envelope Cash System:
- Create a budget – You’ll need to decide where you’ll spend that money.
- Make envelopes or purchase them
- Put budget categories on each envelope such as groceries, gas, date night, utilities, etc based on your budget.
- Put the exact cash in the envelopes that you need
Remember that you should never spend any money out of a specific envelope to finance any other stuff. For example, don’t take money from your grocery envelope to finance shopping for clothes.
Get A Side Gig
You can reach a point in your finances where you can’t stretch your income any further.
When you reach this point in your finances, you’ll need to find a side hustle.
You can make extra cash in your spare time with surveys, blogging like what I am doing here, become a freelancer on Upwork or Fiverr, translator, etc.
The quickest and easiest way to make money is with paid surveys. My favorite survey site is Swagbucks!
You can read up on other side hustles here.
If you’re looking for inspirations and success stories definitely check out Side Hustle Nation and learn how others turn a simple side hustle into 7 figures and leave their 9-5 jobs.
Invest In You
Never be the person where everything around you is advancing except you!
You don’t need to have a ton of money to invest in yourself when you have Youtube and free courses online.
Learn a skill and make money from it.
Use Cash Back Apps and Coupons
Are you looking for ways to save money on grocery shopping? Grocery shopping is inevitable and it’s one of the main budget categories.
Learn how to eat healthy on a budget here.
You can save a few dollars here and there by using these two apps.
Ebates: You’ll find many cashback deals here from over 2,000 stores that help you save money when you’re shopping. Get promo codes, deals, and coupons when shopping online.
And the best thing about this cashback app is that it’s completely FREE to join!
Build An Emergency Fund
This is really important if you want to have a secured future.
Dave Ramsey recommends before you pay off your debt using the snowball method (baby step 2) is to save up $1000 as a baby emergency fund.
To have a fully-funded emergency fund you’ll need 3-6 months of your personal expenses set aside in a savings account.
An emergency fund is monies put aside for unexpected events also known as rainy days.
This could be a job loss, medical emergency or something that you need money for now that you don’t have otherwise.
If you have cash put down, when an emergency arrived you’ll have funds to use and that will prevent you from using credit.
So you need to save an emergency fund that you shouldn’t touch unless it’s necessary.
These are the best tips to stop living paycheck to paycheck super quick. The first thing you need to do is to budget and cut back on your expenses.
If you feel like you can’t make two ends meet no matter what you do then that might be a sign that you need to find a side hustle.
I hope you enjoy this post and ensure to pin!