Breaking the Paycheck Cycle
How to Stop Living from Check to Check
Recently a Bankrate.com survey showed that around seventy six percent of all Americans fall into the category of living paycheck to paycheck with very little in the way of savings or retirement. Not only is this uncomfortable as a condition to live under, it is also dangerous in situations where you work in a dangerous job and are the only family member actively bringing in an income. By living this way you unintentionally open yourself up to financial hardship and can find your life turned upside down in an instant.
This happened to me when I was younger, the rent on my apartment jumped significantly and I had no way to cover for it, soon I was unable to live my life as meager as it was because I suddenly found myself living out of my car. Not my proudest moment. Soon after I realized that heir was a pattern not only to my bills but to my paychecks and through analyzing I was able to make the appropriate choices to give me some breathing room and to eventually set myself back up in order to succeed, this time a little wiser about the circle or bills and paychecks.
So my first step would be to analyze when the money is coming and when it is leaving, find the ebb and the flow and you will be able to plan accordingly. Another quick and easy way to ensure that you are getting the most out of your money is to establish a budget. While relatively simple sounding, having a budget you stick to can make a profound difference when it comes to knowing where your money is going and how much you have left. My personal opinion is that you have a set amount that you always put into savings and utilize the remainder without dipping into the savings account.
While I realize that saving may not always be feasible it should come as no surprise that I also endorse cutting unnecessary spending. When I finally realized that stopping at the burger joint everyday for lunch was eating away at what little savings I could have had I was able to make a change for the better, often times these little sacrifices are not pleasant and are the easiest to give into but I promise that the ease of mind that comes with being paces ahead of your next bill are well worth the effort and self control.