How To Stop Living Paycheck to Paycheck

How do you get ahead of the game financially? It all boils down to living on less than you make by spending less than you earn. This doesn’t mean you have to struggle to make ends meet or that you still can’t live comfortably. You just have to be aware of your spending, be organized with where your money goes, be motivated to find deals and be ready to save consistently as you go.

Budget

The most important thing is to discipline yourself to stay on budget and don’t spend more than you have. Spend one month focusing on where your money goes and write it all down. By keeping track of each purchase over an extended amount of time, you will have a broad picture of necessary versus unnecessary purchases. Also, a good rule of thumb is to have a monthly rent or mortgage payment less than or equal to your weekly income.

Focus on the Necessities

So often these days you see offers for monthly subscriptions that are promoting anything from monthly pet supply boxes to monthly wine subscriptions — do you really need that monthly beauty box? Learn to pay for only the necessities first, such as quality but affordable foods, and utilities for your home to keep your daily life running properly. Paying rent on time and having reliable transportation are other necessities.

Get Out of Debt

Focus on better control when it comes to credit card use. Do not use credit to pay bills or to buy groceries, and definitely do not use credit to “treat yourself” to anything. The interest you’ll be paying later is not worth the treat today. It’s actually a better idea to keep credit cards only for emergencies, such as unexpected car or house repairs.

Find Ways To Cut Back

Invest in energy-saving light bulbs, keep the thermostat low in cold months and higher in warm months, and shop for the cheapest gas. Reduce the amount of times you and your family eat out, go to the movies, or shop for unnecessary items. Check your budget and save up for special outings and purchases, or find cheap activities to do at home or around town. Also consider how much you spend on cable and internet services or cellular data packages. These services usually have cheaper options with fewer add-ons that aren’t considered necessary to living comfortably.

Bargain Hunt and Cut Coupons

Every store offers clearance racks these days. Find them and frequent them whenever you need a specific item; you may just find it there for a fraction of the price. Also check for coupons in all the available places — online for manufacturer’s coupons or in the grocery store’s weekly ad. Checkout buy/sell/trade forums online for slightly used items you need, and even sell some of your own belongings for extra cash toward debt or savings.

Start a Side-Job

Offering a neighborhood service like cleaning out gutters for an elderly neighbor or working part-time at a local retail store can greatly supplement your income. Working more will also reduce the amount of time available to spend your hard earned money.

Save Automatically

So many people attempt to save whatever may be left over from each paycheck, then wonder why they struggle to save money. Saving has to occur regularly but within your boundaries. After each paycheck, make it a habit to automatically save 10% or an exact amount every single time you get paid. Compare your monthly or quarterly savings to your year-to-date (YTD) earnings on your paycheck to ensure you’re sticking to your goals. Study and learn more about financial terms, such as YTD meaning, to better approach your saving goals.

Changing the way you look at your income and expenses is key to getting ahead of monthly bills and living a comfortable, debt-free life. Utilize these plans in order to stop relying on each paycheck to stay afloat, and become the thriving boss of your own income.