Some people live paycheck to paycheck. I don’t know why because no matter how much money you make you can always afford to save a little. Actually the truth is you can’t afford not to.
The first thing you need to do is to start tracking your finances from day to day. Everyone spends money so this applies to you too. If you take the time to write down what you spend your money on go back to look at it later then you will realize how much of it could have been cut down or even cut out altogether. All you need to do this is a sheet of paper and a pencil. Just write a brief summary of things thing you buy for reference later.
Stop getting further into debt. If you are already in the whole (like most of us who live paycheck to paycheck are) then you can quit making things worse now. All you have to do is stop any unnecessary spending and cancel your charge accounts and credit cards. Getting behind on a credit card is one thing, but once you realize what you’ve done and you continue to go farther and farther in debt you are making it that much harder to get out of debt.
If you don’t feel like you can survive without your charge accounts then maybe it’s time to step back and look at your lifestyle. Maybe you don’t need a fancy cell phone or to drive a brand new car. Or maybe you live in a house that’s above your means as far as money is concerned. These are ugly truths, but in reality going farther into debt isn’t going to make the situation any better.
On a side note you can feel blessed to even have a home to live in. Some people don’t have that. When you consider how much money you need for unnecessary items think of all of the starving children in other countries who can’t even afford food to eat.
Once you’ve got your spending under control then it’s time to save. You need to start by saving as much as you can and try to be consistent. If you can save 50 dollars per paycheck great. If it’s a hundred even better. Then act like you don’t even have that money. Put it in a savings account and don’t get a plastic card attached to it. That way you have to actually drive up to the bank to withdraw your money and you won’t be tempted to impulse spend your savings.
Getting started saving is one of the hardest things to do with your money. Once you get some momentum built up then it will get a lot easier from there. After the first 1000 dollars you will feel a sigh of relief come over you.
Once you get a good amount of money built up, then it’s time to consider paying off those debts that are accruing interest. If you have enough money then stop making the minimum monthly payment on your credit cards and just pay them off. You will save a fortune in interest rates and fees.
Also make sure you plan out a budget and try your hardest to stick with it. If you say 200 dollars for food and spending money each week, then that’s all you need to allow. Try to do it on the same day each week also, even if you don’t get paid that day. Pay yourself your grocery and spending money on Friday’s even if you don’t get paid but every other week. That way when you paycheck is put into the bank you won’t need to rush out and buy groceries and other necessary items.
Anyone can save and stop living paycheck to paycheck no matter how much you make. Even if it’s only 5 dollars per week save something and you will be on the right track. Good Luck!