How to Stop Living Paycheck to Paycheck Today

The majority of Americans live paycheck to paycheck. If you’re a part of the 78% of the population that live paycheck to paycheck, it’s time to stop.

You can change your financial situation by making a few small and easy changes. Follow these tips and stop living paycheck to paycheck.

Create a Budget

Are you tracking where and when your money leaves your account? If not, then you don’t have a budget, and you don’t know how you’re spending your money.

The first step to creating a budget is to know exactly how much money you bring in every month. Then write down on a list every time you spend money. This could be anything from your monthly utilities, to a tank of gas, to that soda you bought at lunch.

There are several budget websites that help you organize and prioritize your expenses. This will help you find areas where you can cut spending.

Adjust Your Income Tax Withholding

While getting that fat check during tax season is nice, it could be more useful to get that money throughout the year. The larger your tax return, the more money that gets taken out of your regular paychecks.

Adjust your withholding on your W4 and resubmit it to your employer or their pay stub generator, such as ThePayStubs.

Use Direct Deposit

Do you struggle with splurging right after your paycheck gets deposited? Try having your employer automatically deposit a portion of your paycheck into a savings account.

This will help you save by putting money aside for you. This way, you won’t be tempted to spend it. To make the most of your money, look for a high-interest account.

Create an Emergency Fund

One thing that keeps people stuck in a paycheck to paycheck lifestyle are the unexpected expenses. These are things like getting sick and needing to go to the doctor or your car breaking down.

By having an emergency fund, you can dip into this account instead of your monthly income. Try to create a financial buffer that will cover you for at least a couple of months. Knowing how much you need to save will be easier if you’ve created a monthly budget and know what your expenses are.

Get Rid of Your Store Credit Cards

If you’re struggling financially, it’s best to not have a lot of credit cards. The ones you do have should not be store credit cards. After the initial signup promotion, they offer few benefits.

Instead, make sure the credit cards you have offer ongoing benefits. This could be cashback on all of your purchases. Or you could opt for a travel rewards card.

Stop Living Paycheck to Paycheck

As we close in on the end of 2019 and look to the beginning of 2020, it’s time to stop living paycheck to paycheck. Take a look at your income and spending and look for places that you could trim your spending.

Check out the wisdom section of our blog for more helpful advice to improve your life.