Mindset & Psychology Personal Finances

How to Stop Living Paycheck to Paycheck: 5 Short Tips

“Living paycheck to paycheck” means that you are acutely dependent on every paycheck you receive.

You spend all the money you earn, and therefore do not have time to make savings that can insure you in case of problems and unexpected expenses.

1) For many families, living “paycheck to paycheck” means that if they unexpectedly lose their job, they will not be able to buy food, pay utilities, pay interest on a loan, etc.

This forces people to hang on to their work, even if they don’t like it at all, draining all their strength/soul.

After all, if they are fired, they will be left completely without money and will have to take out a loan again.

2) If you are in a similar situation, then it is time to make (even the smallest) changes to your lifestyle.

Make changes to the way you usually handle your money.

It will be a little difficult at first, but the effort you put in will quickly pay off.

3) Overcome “consumer drunkenness”

For the last decades we have been living in a society that encourages lavish lifestyles and non-stop buying of anything and everything ( = consumerism).

On the one hand, there is nothing wrong with this, because “we deserve it” — and that’s why we earn money.

But, on the other hand, we are not always able to “turn on the brakes” on our expenses in time.

As a result: we often behave “like an alcoholic” who has money and immediately runs to the store for a bottle.

Even a serious increase in salary cannot save us from this “misfortune” — money always “disappears” faster than we earn it.

4) Aging your money

First of all, try to save up an amount sufficient to pay your expenses for 1 month.

This will allow you to start paying for the current month’s expenses with the “old money” you received last month.

This small “stash” will seriously change your psychological state.

You will feel less stressed, stress will go away, and a feeling of lightness and calm will appear.

Such peace of mind is “worth a lot.”

Now imagine that gradually you were able to make savings sufficient for your family to cover 3-4 months of expenses.

As a result: You no longer live “paycheck to paycheck”; you have “seditious thoughts” of changing your job to a more promising and higher-paying one.

Beauty, and that’s all!

5) Set up your family finances so you don’t fall back into the paycheck-to-paycheck cycle.

Sustainable financial wealth is the result of just a few smart decisions we make based on basic financial literacy.

It doesn’t depend on how much money we earn.

It depends solely on how much money we manage to save (after receiving our next salary).

Here’s what to do:

(1) Save a certain amount from each of your income.

(2) Slowly reduce discretionary spending.

(3) Build up a financial cushion.

(4) Take a closer look at investments and additional income

By CashGuy

Online Money Maker

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