How to Stop Living Paycheck to Paycheck- 7 Strategies You Can Implement IMMEDIATELY!

Ever feel like no matter how much you start to focus on bettering your finances, you still find yourself living paycheck to paycheck. Well, there are seven strategies that you can start implementing immediately to end your paycheck to paycheck. Lifestyle for goods.

CNBC reported not too long ago, that career builder.com did a study that showed that 78% of Americans live paycheck to paycheck. And this does not just include people who are considered poor or middle class. One in 10 Americans who earn over a hundred thousand dollars per year report that they also live paycheck to paycheck and 59% of those people who earn $100,000 or more a year report that they’re in the red or they’re still in some kind of consumer debt. So who’s to blame? Who’s at fault here? Well, part of the blame goes to the government in this capitalistic society we live in. When you factor in inflation and high tax rates, you can understand how your dollar does not stretch as far as it does today as it is, let’s say 20 years ago. But we also have to take some blame ourselves as well, right?

Because guess what? If only 78% of Americans live paycheck to paycheck, that means there’s 22% left that don’t. And if one in 10 Americans who earn over a hundred thousand dollars per year say they live paycheck to paycheck, that means 90% report that they don’t. And here’s the thing, with a few small simple tweaks to your finances, you can be in a completely different financial position three months from now, six months from now, 12 months from now, five years from now. And the great thing is these seven strategies do not take long for you to implement at all. So let’s get into strategy. Number one is two parts. Our shoes, much change your thoughts and when you change your thoughts, your habits began to change. A lot of us are in the financial position we’re in right now because frankly, we have very, very bad financial habits. Let’s just be honest.

I used to be that person. Warren Buffett once said, don’t save what’s left after spending. Spend. What’s left after saving. See most people don’t do that. Most people make sure that they pay all their bills first and they pay themselves less or they don’t pay themselves at all. And you can’t do that. You have to make sure that you’re saving money for a rainy day. And here’s another thing, when it comes to changing our thoughts and our habits regarding money and finance, one of the biggest things that I see is that a lot of us, we don’t think about the very basic fourth and fifth-grade math that goes into every transaction that we make. I like to tell people like this, let’s say that you will contemplate buying some $50 jeans. Okay? And you make $10 an hour. Think about how many hours you have to put in an actual job, whether you work hard or not.

You know, time is money still. So if there are $50 jeans that you’re looking to buy and you make $10 an hour, that means you have to work for over half of your day. Cause most people work eight hours a day. You have to work over half of one day for one transaction and after you factor in Texas and everything else, you’re pretty much working about seven hours, six or seven hours just for that one pair of jeans. And like I said, this is something that’s basic fourth and fifth-grade math and it’s not to say that you don’t know how to do the math. Most people just don’t think about transactions in this way. If you start thinking about transactions in this way, I promise you, you will start to think a little bit more before you make certain purchases, especially when it comes to things that you don’t necessarily need and you just want it for now.

And that’s a very dangerous situation. There’s a quote that I see that goes around all the time in the finance world and it goes something like this. If you buy things you don’t need, still you’ll have to sell things that you do need. And what that means is when you’re overspending in certain areas like on clothes and shoes, things that you can’t necessarily afford right now, you’ll end up having to sell some of these things that you need to be able to pay just your regular bills. I see people talk about having this problem all the time and that’s a really big issue, but it all comes down to the mindset. Now, I’m not saying that you have to live frugal for the rest of your life, but at least while you’re on your financial journey, while you’re getting to the point where you become debt-free, these are things that you have to be very conscious about, especially in the beginning.

Now, strategy number two is for you to calendarize your expenses. You can buy something simple like this. This is a calendar that I bought from the target for 12 to 15 bucks. It’s a monthly planner and it also has a weekly planner. In the monthly planner, I suggest that you write down all of your monthly expenses as well as calendarizing what your paydays are. This helps you to understand and realize why you might be short money at the beginning of the month going from paycheck to paycheck, but why you might have a little bit more money leftover on your second paycheck for the month. If you find yourself struggling on one check and not the other, maybe you need to contact some of the people that you have your bills with and try to move some of your pay dates around so you can make sure that your money spreads from paycheck to paycheck.

The other part of calendarizing your expenses is to use a weekly planner as well. Now if you are someone who has some kind of business or let’s say you have children and you want to make sure that you keep all of your different activities in one place to make sure that you’re productive, you remember everything you remember, work meetings and different things like that. I suggest that you use the weekly planner for that, but what you also want to do is write down any expenses that you have every day. If you go to Walmart, pick up some cookies. If you got a McDonald’s to get you some fast food, anything you spend your money on a day to day basis, I want you to write down where you spent the money and how much, and when you do this, you will start to see why you don’t have as much money as you should have because you’re spending in places that you don’t necessarily need to spend it.

Right? Because not every expense that we have is something that’s needed. Let’s just be honest that that goes for everyone no matter what income category you’re in. But this is a really big thing that helped me personally. Once I started to calendarize everything and see where my money’s going in different parts of the month. I ended up contacting some of my bill collectors to make sure that I say, Hey, listen, you know, I need this payday moved to this day. Is that okay? And most of the time they’re okay with it. I can assure you, just kind of depending on who the bill collector use. Strategy number three is for you to look at your expenses versus your income. Most people think they have an income problem, they think they don’t make enough money when the biggest problem is that people are not managing their money correctly.

Chances are you have a bank account of some sort and if you are to just go into your bank account, go into your bank statements and just look at the last three to six months. Look at how much money you had coming in and look at how much money you had going out. If you are cash flow negative, meaning that you have way more expenses than you have money coming in, that’s a problem and that’s something that you need to change. You need to look over your expenses, see what you can reduce, see what you can completely cut out. Maybe you don’t need to eat out at a restaurant every weekend. Maybe you don’t need to go hang out with friends and go to the movies every other weekend. These are things you have to think about because your finances are very important and you always have to make sure you have much more money coming in than you do going out.

Now, let’s say you are cashflow positive but your income only covers, let’s say after you pay all of your expenses, you only have a net income of $200 that’s not good. You want to make sure that your expenses are low enough for you to have extra money saved up or extra money left over after your expenses to be able to put into savings and to also be able to invest with as well in the future. Now strategy number four is for you to devise a specified game plan. Now, I always say a game plan because not everyone’s financial game plan will include budgets like mine. I don’t budget and I probably never will. If you are someone who needs something more strict and you like to kind of be confined a little bit, do your research on different budgets that are out there. There are many, many different types of budgeting, but either way, regardless of how you do your financial plan, find a financial plan that works for you that’s easy to follow and that’s easy for you to be consistent with.

This is a really important step because one thing you have to understand is that if you fail to plan, you plan to fail. Most people fail with money because they don’t have a plan. They fail to plan a plan for their money, which is why they plan to fail with their money, and which is why they fail with money. So you must find a plan that works for you. Strategy number five, and this kind of goes with strategy number four. Like I said, your financial plan needs to have something in a place where you know how much money you’re putting off into a savings account every month. So strategy number five is for you to have emergency funds. Now, statistics show that 56% of Americans say less than a hundred dollars a month. That is horrible. And if you’re one of those people is okay, that’s why you’re here right now.

One of the biggest things that mess people up is they think that their finances are right on track. They’re doing everything right and maybe they’re not doing everything right, but then an emergency happens. They get a flat tire, they get a couple of flat tires, their car needs some kind of thousand dollar repair and they don’t have the money. If you had emergency funds set up, I promise you, I promise you, I promise you, you would think of our life a whole lot differently. One of my mentors, what he likes to say in regards to emergencies is that the size of your emergency usually reflects the size of your emergency fund. See if something goes wrong with your car and it’s $1,000 but you have $3,000 set up in a mini emergency fund, you’re not going to sweat it cause you know the money is there.

You have the money specifically there for that reason, but when you have a thousand dollar car repair and you don’t have any money saved up because well you have a mentor, right, with your finances. That’s a big, big difference in your mental state, right? A lot of people get stressed out because they don’t have the money to cover emergencies that we know pretty much had the possibility of happening, but we can’t plan for them to happen either. Now having an emergency fund actually to emergency funds is part of the four financial goals you need to reach to become wealthy. And if you haven’t watched that post yet, I will link that up at the top in the eye cards. Strategy number six is for you to have sinking funds. Now sinking funds are new to me. It’s something that I actually kind of discovered maybe about three weeks ago.

And sinking funds are a little bit different than emergency funds. They are the same and that the money goes into savings, but thinking funds are more so for large purchases or large transactions that you know are going to happen. For instance, I know that every single year I have to pay property taxes, which usually runs me about 350 to $375 so let’s say that I budget for $400 and I know this is coming out every single year because I have to pay my property taxes every single year. I can create a sinking fund in which I would take the amount that is a Yogi expense, or it can be a quarterly expense. Let’s say you don’t pay your electric bill month, you pay it every quarter, let’s say you can do it that way as well, but we’ll just go based off of something this yearly, I would take the amount, I would divide it by 12 and that’s the amount that I need to put towards this specific savings account.

That’s only for this specific sinking fund. So you might end up having about six different statements accounts to go towards your six different thinking funds. That’s just how it works. And so when you do that now, once your yearly expense comes up or your quarterly expense comes up, that $400 is $600 however much it is, it doesn’t hurt your checking account, your bank account as much because you’ve already put money off to the side for this. Strategy number seven, and this is usually the last strategy that people start to implement, is for you to invest at some point in time and you do not want to work, right? Most people don’t want to work until they die. Well, that means that currently when you work and you get paid, you’re paying for your current lifestyle. Meaning when you to work that eight to 12 hours today, the money you’re getting on your paycheck pays your bills for now.

Well, if eventually, you don’t want to work anymore, that means you won’t have money coming in for 40 hours every single week. That means you have to start investing now for you to be able to fund your future lifestyle. Again, this is a step that’s usually a little bit later on for most people. They want to get out of debt first and different things like that or they may take time to research different investment farms, but I can assure you that one thing you have to have, even after getting out of all this debt and saving money, you have to have your money working for you and the only way your money can work for you is through investments because again, at some point you don’t want to have to keep working and also you have to think about it. Your money can work for you better than you can and what I mean by that is your money never gets tired.

It never gets sleepy. It never has to worry about taking the kids to the basketball game. It doesn’t get sick. It doesn’t do any of that. Money just works and you want to make sure your money is always, always, always working or you. Now, some people may think, look, these seven strategies, this is a lot. This is too much work. I’m going to show you. It’s not that complicated. See, writing down your expenses is not work. Work is trying to get out of a financial hell hole that you put yourself into because you weren’t paying attention to the bad financial habits you had. Work is trying to figure out how to make ends meet because now you have this payday loan with 800% interest, which is crazy what they’re doing out here in that industry, but that’s worth trying to figure out where do you going to get this extra money to pay off this crazy payday loan or this crazy title on or this crazy person alone put in things on your credit cards.

It shouldn’t be there, but now you have to work against 27% interest. That’s work. This is not working. See adults devise a plan that works. Children do what feels good. We as adults can’t keep spending money because it feels good for us to have whatever item that was connected to that transaction. We can’t do that. You can’t tie emotions into your transactions. Are you going to splurge now and then? Absolutely, but you shouldn’t be splurging if you’re in a position where you’re living paycheck to paycheck. I always tell people, understand you’re not the only one in this position by any means. You heard the statistics that I gave out earlier, but what you don’t want to do is continue to be a statistic year after year after year. Please like this post, subscribe to my channel and feel free to share this post with anyone you know who needs to hear this information. I can’t wait to hear you all assess them on these weeks and months from now. Feel free to leave comments down in the comments section as you start to implement these strategies and let me know how it has helped you. I’ll see you in the next post

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