Stumble Forward

Avoid Life's Financial Pitfalls

  • Blog
  • About
  • Contact
  • Resources

6 Smart Ways to Escape a Paycheck to Paycheck Life

March 10, 2020 by Christopher

Source

Making your small paycheck last is close to being rocket science. It is that hard. Surviving from paycheck to paycheck, sometimes with the help of payday loans, is more common than you may think.

This is fine from time to time, especially if you still manage to save up for retirement or an emergency fund.

But if it has become a way of life without any form of saving insight, some changes need to be made.

Follow these simple but helpful tips to escape a paycheck to paycheck life or live it with a purpose.

 

 

#1 Track your monthly expenses

 

More often than not, your monthly spending could be better.

Track it for one month or more to get a good idea of where your paycheck goes and make it last longer by removing non-essential expenses.

You would be surprised at how much little things like unnecessary grocery items and dining out could add up.

 

 

#2 Set up an automatic savings

 

If you are waiting for some extra money sitting around to put in savings, you would be waiting for a very long time.

Be proactive and set up an automatic transfer from your payroll account to a separate savings account.

 

 

#3 Set money aside somewhere you could not get to easily

 

The challenge in saving money on a tight budget is resisting the temptation to dip into it when things get tough.

It may be a great idea to set up a term deposit where you could not readily make a withdrawal until the term ends.

Just make sure to choose one with the most favorable interest rates. Then consider payday loans to occasionally get you to the next paycheck as long as your savings remain intact.

 

 

#4 Manage fixed monthly expenses

 

Housing normally takes up a significant portion of your paycheck. A healthy percentage is around 30% of income going to housing expenses, whether for rent or amortization.

If you are spending higher than this, consider moving to a less expensive or smaller apartment, getting a roommate, or consulting a financial expert to refinance your housing loan.

Another monthly expense you may want to look into is your car payment. Downgrade from a high-end car to a more economical vehicle if your monthly car payments take up more part of your paycheck than you are comfortable with.

 

 

#5 Eliminate wants, keep needs to a minimum

 

Take a look at your current lifestyle and decide which things you can live without. Consider cancelling your cable or

Netflix subscription, and find more creative ways to spend time with your family, like fun games or outdoor activities. A gym membership can also be replaced with doing plyometric exercises at home or by running.

Another way to stay healthy and save money at the same time is to be mindful of what you eat. Avoid buying sweets and junk food or eating out too often.

 

 

#6 Do not include bonuses in your monthly budget

 

Set aside bonuses for retirement, emergency, or other types of savings.

The same goes if you get a raise. You have managed to survive on your previous income; do not change your lifestyle just because you earn more.

With these helpful tips, some self-discipline, and healthy financial habits, navigate the paycheck to paycheck life effectively or better yet escape it completely.

Related

Filed Under: Money Managment

About Christopher

Chris is a personal finance blogger with Stumble Forward helping people avoid life's financial mistakes and live a higher quality financial life.

Connect with Chris on
Google+

Get To Know Me

Hi, my name is Chris! I’m a personal finance and small business nerd.  Check out my blog where I share all of my favorite tips about saving money to running a small business.

As Seen On…

Top Articles

Categories

  • Budget Updates
  • Business Opportunities
  • Business Tips
  • Careers
  • Construction
  • Consumer Advice
  • Cooking
  • Credit Cards
  • Credit Reports
  • Debt Managment
  • DIY
  • Education
  • Faith & Money
  • Financial Independence
  • Financial Security
  • Health & Fitness
  • How To Guides
  • Identity Theft
  • Insurance
  • Investing
  • Law
  • Market Updates
  • Money Managment
  • Mortgages & Loans
  • Niche Site Updates
  • Online Business
  • Pets
  • Podcast
  • Reader Poll
  • Real Estate
  • Reviews
  • Saving Money
  • Scams
  • Tech
  • Timeshares
  • Travel
  • Tutorials
  • Uncategorized

Get To Know Me

  • View StumbleForward’s profile on Facebook
  • View StumbleForward’s profile on Twitter
  • View choldheide’s profile on Pinterest
  • View choldheide’s profile on LinkedIn
  • View +ChristopherHoldheide’s profile on Google+
  • Blog
  • About
  • Contact
  • Resources

Legal Stuff – Yep We Got That Too

Privacy Policy
Disclaimer for Stumble Forward
FTC Disclosure

Copyright © 2021 · Magazine Pro Theme on Genesis Framework · WordPress · Log in