How to Stop Living Paycheck-to-Paycheck

If you’re living paycheck-to-paycheck, you know how stressful it is to try and make every dollar count. It’s emotionally draining, and even worse, it puts you at a great risk for financial catastrophe. Accidents happen, and if you’re already living that strictly, you can’t afford several hundred dollars for emergency medical bills or car repairs. Stop living paycheck to paycheck and start saving for the future with these few tips to get you out of your financial rut.

1. Build yourself a budget.

If you haven’t already done so, create a budget for your monthly spending allowances. Determine how much money you need to pay your rent or mortgage, utility bills, how much you want for spending money, and how much you want to put into savings.

2. Trim the fat.

It’s tempting to spend a dollar or so here and there for snacks and drinks that individually aren’t that pricey; however, expenses add up. Take a look at your budget and cut out non-essential spending. Cook at home instead of eating out. Cancel any unnecessary subscriptions. Run all your errands together to save on gas. You’ll be surprised at how quickly these little things start to add up.

3. Save first, spend second.

As soon as you get paid, take the money out that you want to go into savings and put it somewhere you won’t touch it. You can set up an automatic transfer to send the money directly into a different account right when you get paid so that you won’t be tempted later on to spend it. You may miss the money at first, but eventually you won’t even remember you used to have that extra cash.

4. Live well below your means.

You might be able to afford a bigger apartment or a nicer car right now, but hold off and put that money into savings instead. If your income increases, continue to place a majority of the extra money into savings.

5. Pay your bills when they’re due.

While it might seem easier to put off paying your phone or electric bill for a few days until you have more money, it’s actually costing you money in the long run. Late fees, even if they’re only five dollars, add up over time and will take a chunk out of your budget that could be put to use elsewhere.

6. Supplement your income.

If you’ve trimmed the fat from your budget but you’re still seriously struggling to make ends meet, you can consider adding more income to your monthly budget. Sell off some of the stuff you no longer use, ask your boss for a raise, or look to take a side job for few months to help cushion your budget and relieve some of the stress you feel financially.

7. Remember what living paycheck to paycheck felt like,

and make a commitment to never return to that lifestyle. It may be tempting, once you have a good amount of savings built, to turn back to your old lifestyle and spending habits, but resist this urge. Remind yourself of the stress and strain that you felt when you had financial troubles whenever you feel tempted.

Living paycheck to paycheck never has to be a permanent lifestyle. It may be frustrating to live well below your means for a time to build your savings, but living that way doesn’t need to be permanent, either. Start saving and commit to your goal, keeping a brighter, more financially secure future in mind.