How to stop living paycheck to paycheck?
First of all what does it mean to live paycheck to paycheck?
You have no savings.
You 100% rely on your paycheck every week or month. If you didn't receive your paycheck, your bills wouldn't get paid because you have no other means of income or savings.
Your tire goes flat and you have to buy another one. You either 1. Can't afford it 2. You can pay for it but now you don't have money for your power bill 3. You put it on a credit card.
You are constantly asking family to borrow money.
You are stressed all the time about money.
What it looks like NOT to live paycheck to paycheck?
You have money left over at the end of the month.
You have at least $1,000 in your savings account.
If your paycheck was delayed or you got laid off, you have some in your savings to get you by until you receive another one.
Your tire goes flat and you have to buy another one. No sweat, you'll just pull from your emergency fund to pay for it.
"Saving your first $1,000 will be the key that unlocks you from living paycheck to paycheck."
I know what you are thinking. "But I DON'T HAVE $1,000 don't you get it????" I hear this over and over. This is what you are going to do:
Stop ANY AND ALL subscriptions.
Cancel cable (at least until you get to the $1,000).
Cancel gym membership (workout at home until you hit the $1,000).
Do a No Spend Month or 2 or 3. Read blog on No Spend Month: https://www.juliehaneline.com/post/do-a-no-spend-month-challenge
Cut back going out to eat dramatically and eat at home.
Sell items that you don't want or use anymore (furniture, clothes, etc).
Get a 2nd job or side hustle. This doesn't have to be permanent, remember you just need that $1,000! Read my blog on side hustle ideas: https://www.juliehaneline.com/post/side-hustle-ideas
Start budgeting to figure out where your money is going! You may find categories you can cut back! Here's a great starter template that I'm providing for 50% off to my blog readers! Use code BLOG50 https://www.etsy.com/shop/EnrichDesignsShop?coupon=BLOG50
Pause your 401K or IRA contributions. ONLY for a short period though to save, especially if you are contributing a large amount.
Sit down weekly and review your savings. How much did you save? What can you do this week differently to save anymore?
Saving $1,000 is an important financial step in achieving long-term financial security and will help you stop living paycheck to paycheck. Start saving today and stop making excuses! You got this, you can do it, and you ARE good with money!