Ending the Paycheck to Paycheck Cycle

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. 

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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.