Ending the Paycheck to Paycheck Cycle
>> Jan 1, 2020
Many people who make a decent salary still find themselves
dealing with financial ruin. They live paycheck to paycheck with no end in
sight. The good news is that you can break free of this vicious cycle and
finally achieve financial wealth.
image:pixabay.com/photos/money-finance-business-success-2696234 |
Establishing a Budget
A budget may seem insignificant; however, that piece of
paper provides a lot of information. It gives you insight into the amount of
money you owe out and to whom you owe it. It also lets you see in clear and
undisputed black and white where you spend your money. This information will
help you change your spending habits.
Sticking to a Budget
Of course, a budget only works if you stick to it. If you
stay the course (no matter how difficult) the first few weeks might be, in the
end, you'll have money set aside for things such as emergencies, a vacation,
and your retirement.
First Steps to Financial Freedom
One of the best ways to achieve financial freedom is to pay
down your debt. There are several methods you can use that will provide the
same outcome. You can take the credit
card with the highest interest rate and put
your extra money towards it every month. Or you can take the card with the
lowest balance and pay that one off first. If you have equity in your home, you
can also refinance the loan and use that money to pay down as much of your
credit card debt and personal loans as you can.
Getting Smart with Your Money
In order to stay the course and keep your debt under
control, you'll also need to view money differently. After all, you worked hard
for it. Instead of just giving it away, think about what you spend your money on
and whether or not it's worth it. For example, let’s look at your cable bill.
Do you really need all those channels or can you scale back? Or, better yet,
consider whether or not you can do without cable completely. There are other
service providers such as Hulu or Netflix who offer rates that are more
reasonable. The same goes for your car insurance. Do your research to make sure
you’re getting the best deal. To check out other companies, click
here to see if another company’s rates are
better.
Places You Can Save Money
Ok, so you may not be able to negotiate your school’s
tuition. However, you can lower your weekly food
shopping bill. Many people still don't pay attention
to prices. It's time to get frugal and start keeping more of your money. You
don't have to sacrifice on quality or quantity, you just have to learn to shop.
Use the weekly flyers from your local supermarkets and compare the prices. You
should also visit one of the many sites that let you print coupons for free.
Every penny counts and, if you cut back on your food bill, you'll free up
monies that you can apply to your debt.
Reel it In
If you frequently order take-out, stop for coffee on the
fly, and make buying your lunch a daily habit, you're using up a lot of money
each week. While your life is hectic and you may not have the time to
prepare meals or bring your coffee, spending your extra cash will prevent you
from achieving a comfortable lifestyle. Instead, learn to compromise. Instead
of buying coffee each day, limit yourself to 2 days of the week, and do the
same with ordering lunch. As for ordering take-out, limit it to once or twice a
month, as a special treat.
If you currently live paycheck to paycheck, your money is
never really yours. By establishing and sticking to a budget, eliminating services you don't really need, and developing a newfound respect for your money, you will
achieve financial success.