Breaking The Cycle Of Paycheck To Paycheck Living

by Pam on July 31, 2017

It’s extremely difficult to get through the month without stress when you live paycheck to paycheck. Not knowing whether you are going to make it another week and whether you can stretch the little budget you do have left for food is so difficult to deal with. It shouldn’t surprise you though, that so many people have no other choice but to live paycheck to paycheck. Scrambling to make ends meet at the end of the month can be very depressing and have a knock-on effect for your health. You could also be unhappy when it comes to trying to cover an emergency that you just don’t have the funds for.

There are many ways to break the cycle of living from one paycheck to another, and sometimes it’s help from that is needed, but a short-term loan doesn’t solve a long-term problem, so you have to look at the bigger picture. Reaching financial goals is the ultimate way to stop living from payday to payday and we’ve got some tips to help you get there.

  • Learn To Budget. For some, the reason they live in difficulty is simple overspending. By not setting out clear goals for each outgoing every month, you are effectively giving yourself free reign to spend money you haven’t got. It doesn’t take long to write a monthly budget, so sit down and use a site like this to help you. Once you know your outgoings and how much you have to spend on each bill, it can make it far easier to manage the disposable income you do have.
  • Cut Back. When you’ve sat and looked at how you are spending your money, work out where you can cut back. Reduce your premium gym membership to a basic one and utilise the pavement outside for running – it’s free. Downgrade TV packages from the highest spec to basic and change the bells and whistles on your mobile phone contract. There’s not a need for the best of the best when you have a pauper’s’ wages.
  • Save. When you have seen how much disposable income you have, take 25% of the total for savings. By putting this money away each month, you are allowing yourself to be covered in an emergency and you are ensuring you are covered in the event of a job loss. The trick is not dipping into your savings for indulgent expenses that you don’t need! If you’re tempted, look at a closed savings account you cannot access.
  • Pay Debt. Paying off outstanding debts is a key to reducing your outgoings. If you can free up money spent on debts, you can add to your disposable income you have at the end of the month.

Managing your finances is never easy but once you get into the swing of things, you can really enjoy your cash at the end of the month and finally reach the financial solvency that you crave. There’s no need to worry anymore, because you now have the solution!


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