Are you tired of having month left at the end of your money? When was the last time that you had money in your pocket on payday before the paycheck hit your account? If it has been longer than you care to remember, it is time to make some changes that will break that pattern of living paycheck to paycheck.Tired of having month left at the end of your money? Click To Tweet
Let me say right up front here that these techniques might not be the appropriate next step for all readers. you might be in a situation that needs a different approach at this point. Everyone is not in the same condition.
Each person has their own set of circumstances and there are times when you just cannot control the circumstances you are in. I wrote about that period in my life in a blog post titled Who is Responsible to Provide Basic Needs of Americans?
“Living paycheck to paycheck” infers earning a paycheck and spending all of it. If this does not apply to you, take this post with a grain of salt. Maybe you are a student living on a stipend until you graduate and get a job.
If the Shoe Fits
Are you tired of being broke yet? Have you reached the point where you are just sick and tired of being sick and tired? How much money would you need in the bank to give you the security to stop being anxious and just chill out?
Immediate gratification and impulse spending might be robbing you of the lifestyle you really want. All too often, people don’t consider how much or little they have before making a purchase. They just give in and buy what their impulses desire without any plan.
Impulse buying has become a habit and breaking bad habits is hard. It could be time for a change.
Breaking bad habits is hard. Lifestyle dictates spending. People don’t consider how much or little they have before making purchases. Overspending becomes a habit and a lifestyle.
The prospect of change is one of the most pervasive causes of anxiety. To avoid change, many would prefer to stick their head in the sand and wish away a problem rather than confront and solve it forever.
What is Holding You Back?
Making lifestyle changes that appear less affluent to your friends might make you feel vulnerable. Peer pressure could stop you from reaching the goals that you set for yourself.
Once you decide to spend your money according to a plan that will ultimately increase your net worth, something will have to change. You might start brown bagging your lunch or pass on some fun outings for a period of time.
This could set you apart from friends who are more interested in living ‘large’ now. They are living the philosophy that you only live once, so you should do what you want now. You are living the philosophy that you only live once so you should do it right the first time. While they appear to be having fun, you are creating a lifestyle that will endure for a lifetime.
Have you considered how you arrived at the state you are in, wishing you had money in the bank at the end of the month? What is the root cause – not the excuse for the current pay period, but the root cause? Knowing this answer and facing the reality is a sure step in the right direction. Identify the thing that will have to change is the only way to start making a change.
Where’s the Harm in Living Paycheck to Paycheck?
Besides the stress that living this way creates on a regular basis, it is what happens when crisis strikes that really matters.
Here’s an example that I recently read. A friend of the author had an emergency expense arise unexpectedly and had to take a payday loan. The high expense of finance charges on this type of loan are very high, but easy to qualify for.
Since the person had spent everything she earned and had nothing in reserve, the payday loan was the only option left when tragedy struck.
The better option would have been to set aside a portion of the earnings every payday. We all experience tragedy. When it strikes, you have reserves to cover the costs. Reserves also enable low-interest loans with favorable conditions that make life a whole lot easier after the incident.
How and Why
So far, I have said a lot about why you might want to stop living paycheck to paycheck. You likely already know why you want to make a change. So why dwell on the why? That’s because the how is simple once the why has reached a threshold level. If your why is not big enough, all the how in the world will do no good. Now that you’ve identified your why, let’s talk about how.
How to break free from living paycheck to paycheck is a matter of making some changes in the fundamental way you make choices about spending money. There is no shortage of posts with techniques on the how.
You can find some great techniques on how to in a post at Seed Time, How To Quit Spending More Money Than You Make.
Six great hacks on how to break the cycle of living paycheck to paycheck can be found on the Daily Worth website.
I provided some possible solutions in my posts,
Two Keys to Break the Cycle
Self-examination – One of the next steps you will have to take is to examine how you got to this state.
Change what you can and accept what you can’t – A key decision is what actions are within your power to change. By taking the actions within your power and not fretting over the things you can’t change, you begin making progress.
The serenity prayer – God, grant me the serenity to accept the things I cannot change, Courage to change the things I can, And wisdom to know the difference.God, grant me the serenity to accept the things I cannot change, Courage to change the things I can, And wisdom to know the difference Click To Tweet