iving paycheck to paycheck is no joke. My family has been there, and we don't ever want to go back to that situation.
The truth is:
You can stop this situation from re-occurring. You can stop living paycheck to paycheck and save money now.
A better way of living is to live freely without regard to when your next paycheck is coming in. This is no easy feat, however.
There are a ton of people who live such a lifestyle even when they try their best to get out of such a situation. This doesn't have to be you.
A recent paycheck to paycheck statistics reveals that half of the American families are just that. Yikes.
I have read and heard so many versions of paycheck stories. The beginning, the middle, and the end of such stories aren't for the faint of heart.
Living Paycheck to Paycheck: 7 Genius Ways To Stop It For Good
If you want to end this cycle, rest assured that it won't be easy to break it but it's always possible to cut it even when you don’t have the extra cash.
This doesn't mean that you can't get out of it. This doesn't mean that you'll be in this situation forever. No, that's not what I meant.
It can be difficult to break but not impossible.
In this post, you'll find:
- Easy Ways To Stop Living Paycheck to Paycheck
- Things To Do That People Aren't Aware Of
- Challenging Ways To Make Lost Lasting Effects On Your Financial Status
Here are several money saving tips you can follow to stop living this problematic paycheck cycle.
Easy Ways To Stop Living Paycheck to Paycheck
Ready to get back your life, have a frugal life, and have the best financial life you have always dreamed of?
If your answer is yes, then, read on!
1. Admit you have a problem.
When I was in debt, I blamed myself for the situation that my wife and I were in.
I looked into my credit card debt numbers, savings account figures, etc. and realized the math didn't add up and that's why I was in a big hole.
From there, my wife and I figured out ways to make things right. I got a side hustle to earn extra money, got a personal loan – saving us over $3,000 in interest payments, made a payment arrangement with the creditors, etc.
In less than three years, we paid off our 40K debt (story here) and stopped living paycheck to paycheck.
2. Find other ways to make money.
When money isn’t there, money won't magically appear from nowhere. That said, taking on side hustles is a great idea.
If you like giving opinions, going on shopping, reading a book, etc., you might as well get paid doing those. Taking surveys is a great way to make money without leaving home.
With Survey Club, for example, members can earn as high as $115/survey. One member even made $4,000 in a month.
You can do the surveys while watching TV, riding as a passenger, killing time before going to bed, etc. It’s convenient and works around your schedule.
Survey Club and my other favorites below are what I call “Golden Trifecta” in that they are among the most popular sites that pay cash.
- Survey Junkie ( The no-brainer, money-making app that paid one mom $615/56 in just 10 days while her kiddos were sleeping)
- Ipsos I-Say (Est. $620/mo. The survey site people are raving about, and that keeps on giving)
3. Cut your expenses even further with Trim.
Well, that solves everything or not.
Cutting down or out your expenses when you have no more room to cut is easier said than done. There's a solution to that though.
If you've done everything you could to cut your bills but are unable to, one outstanding option to use is Trim – a FREE personal finance concierge app.
It's my new found favorite.
Just connect a bank account, and Trim will analyze your bills, see which subscriptions can be canceled or reduced, what expenses can be cut, etc.
So far, we have saved over $300 this year because of Trim. Reports have it that some have saved over $1,000 in just six months. That's amazing.
Things To Do That People Aren't Aware Of
Here are some of the things that people tend to overlook at or don't want to try because of the fear that those won't work for them and that those could put them in the worse position that just living paycheck to paycheck.
Believe it or not:
They are not bad at all.
4. Take control of your credit card debt.
There are the interest, penalty, annual fees, and others that come with credit card debt. #mountainofdebt
Credit card debt is like a disease that won't easily go away.
For those who are ready to try a simple way to pay down card debt Tally, an iOS app which is free to download is a game changer.
Tally analyzes your credit cards and credit history to make sure it's a fit for you. Consumers typically need a FICO score of 660+ to qualify.
If you qualify, you will receive a Tally line of credit to pay off your cards with high APR balances – saving you significant cash by minimizing interest charges and eliminating all fees.
Tally makes the right payment to the right card at the right time – no more late fees.
Click here to start using Tally – your credit card debt concierge.
* 7.9% – 19.9% APR per year depending on credit. Similar to credit card APRs, it will vary with the market based on the Prime Rate. (This information is accurate as of July 2018.) To learn more about Tally click here.
5. Consolidate your debt to reduce your bills.
Interest charges a killer on our finances. If you're paying 10% or more on interest, debt consolidation could be a great solution.
An excellent resource for debt consolidation is SoFi.
With rates as low as 7.00% and a fixed monthly payment, you can quickly pay off high-interest debts such as credit cards. SoFi could help you save thousands, and get your peace mind and well-being back.
My wife and I used a similar personal loan, paid off $40K debt we had, and paid our loan in just 2.5 years. It's one of the best decisions we've made to date.
We saved over $8,000 on interest and penalty payments by taking out a personal loan. #gotoursanityback
Some say that getting another debt to pay another is a big No No. That's not true.
6. Know where you stand.
Do you know the exact reasons why you live paycheck to paycheck? Do you know your debts, how much you owe, what you can afford with what you and don't have, etc.?
You need to look at your credit report. Understanding and keeping your credit in a good state can and will help you improve your budget. How?
Good credit rating can help you reduce your payments on loans, and other debts over time since a better credit can give you access to lower interest rates.
When we started getting out of this paycheck cycle, our first stop was to look at our credit. We used Credit Sesame to look at our financial health for FREE.
It showed us different offers to help us slash our debt even further that we, otherwise, wouldn't have access to without using it.
A free simple tool like Credit Sesame tremendously helped us. Click here to get a FREE account and see what it can do for you.
Challenging Ways To Stop Living Paycheck To Paycheck For Good
Now, it's time to get more into the mode of pulling yourself from a bad situation. If the ones above don't necessarily work for you, these next one would.
Here are some of the ways you may want to consider to help you how to live frugal and put your feet back on the ground:
6. Be responsible for using credit cards.
A lot of people have gone to accumulate thousands of credit card debts. They use credit cards like they're free money.
The results, however, isn't for the faint of heart.
To stay away from living paycheck to paycheck means to become responsible for using credit cards. Use only the amount you can pay in full when the due date comes.
I use my Discover Card and Capital One Quicksilver for cashback. Between the two, I have accumulated over $4,000 in cashback over the years. I pay them in full when they are due. Plus, I don't get charged late fees or interest.
I use my Discover Card for rotating 5% cash back while I use my Capital One for 1.5% cash back on any purchase.
If you have credit cards with perks, take advantage of those. If you don't, stick with cash or if you want to get credit cards, here are some cards with great perks you want to check out:
- American Blue Cash Everyday Card – 3% cash back (supermarkets), 2% (gas stations and select US department stores), and 1% (on other purchases). Click here to apply.
- Citi Double Cash Card – 1% (on purchases) and 1% (as you pay for those purchases). Click here to apply.
8. Go back to the basics.
So, what the heck does this mean?
It simply means that you go back to satisfying your basic needs and letting go of your wants.
If you are trying to stop living paycheck to paycheck and trying to be debt free, one of the best things you can do is to limit your spending to what you only need. It may be hard to do it, but it will help you out in the long run.
When my wife and I were paying off our debt especially our credit cards, we ultimately stayed away from buying what we wanted and focused heavily on what we needed.
We even got a personal loan to consolidate all our debts and got the lowest interest rate, which saved us a ton in interest in just a few years.
Where did such a change of lifestyle take us? It took us to a debt-free life in just 2.5 years even when I was the only one working in the family and didn't make a ton of money, to begin with.
9. Create a buffer in your checking account.
Another way to stop living paycheck to paycheck is to create a buffer in your checking account.
This will ensure that even if you don’t receive one of your paychecks, you are still able to pay your bills. It is a good idea to keep at least one rent or mortgage payment worth of money in your checking account as a buffer.
This way, if there is an error in payroll at work or something happens to make me miss a paycheck, I am still able to keep a roof over my head.
Here are some quick tips to save money and create that buffer:
- Stop ordering convenience food. Instead of buying takeout, delivery, or going to restaurants, cook meals at home with cheap groceries.
- Cut the cable cord. You can watch your favorite television shows via Hulu, Netflix, or Amazon Prime. These are all a fraction of the cost of cable.
- Sell your unwanted items. Do an audit of your home and collect all of your unused and unwanted items that have value. Sell them at a garage sale, on Craigslist, or on eBay
- Make price comparisons. Before you purchase something, check the price on Amazon and other online retailers. You can often find things cheaper if you search for them. This can save you a few dollars here and there.
- Use coupons and refund tracker. When shopping online, use Honey, a desktop add-on that automatically scans for the best coupons without you having to find them elsewhere. Also, use Paribus.co, which files a price adjustment on your behalf when the products you bought become cheaper.
In addition to the tips above, here are some more tips to help you save money and create that buffer:
- Socialize for free. Going to happy hours and other social events that require you to spend money can burn your budget pretty quickly. Opt to spend time with people in free settings such as volunteering.
- Buy generic items. Certain medicines and foods can be bought in the generic brand than the name brand without a loss in quality. Generic brands are usually cheaper than name brands.
- Eat leftovers. Try making your meals in larger batches so that you have leftovers for the next day. This will save you money and time. You can also use $5 Meal Plan or PlateJoy to save you money with meal planning.
- Bring your lunch to work. Avoid buying lunch food when you are at work. That $5 to $10 per day adds up quickly. Instead, use your leftovers for lunches at work.
- Move to a lower cost of living area. If you are having trouble finding ways to save, it could be because most of your money is tied up in your rent or mortgage. Consider moving somewhere that will be easier on your pocket.
Final Thoughts On Living Paycheck To Paycheck:
This post is jam-packed with ideas to get you started on the path to stop living paycheck to paycheck. Consider using some of my money saving techniques or trying out one of the side hustles I mentioned.
Once you take action, you are bound to see results. Any extra money you save or will make a difference in your finances.
When you break the cycle of living paycheck to paycheck, you will be freer and in control of your finances.
What are you doing to stop this cycle? Are you ready to stop living this lifestyle?