29 Jan 2016
Have you ever said to yourself, I don’t make enough? If you haven’t said it, I am sure you have a friend who has told you that they never have enough money. I have coached people who make $75k to $500k, yes, well over six figure salaries and they are living paycheck-to-paycheck. Coming telling me in our coaching sessions they just are not making enough money.
In recent survey conducted by SunTrust noted that one third of Americans making $75,000 or more annually are living paycheck-to-paycheck. Those surveyed admitted they were not saving as much as they should because of their spending lifestyle, the majority, 68%, blamed eating out as the main reason.
So what can you do to stop living paycheck to paycheck?
You probably don’t think you can save because you “think” you don’t have any extra spending, but as I wrote in “How To Save $1000 In One Month” you can. All it takes is some simple lifestyle changes. Now don’t get me wrong, I know the word simple and change don’t match for some but it is possible, it is a matter of changing habits. Instead of buying a cup of $4 or $5 coffee every morning, brew your own at home, personally I think my own brew is much better than a specialty coffee house and I am also saving time by not having to make an extra stop every morning.
Start taking your lunch to work and eating home at night. Making some simple eating out to eating in changes can save you around $1000 a month….that could be $12,000 in a year.
Watch Every Dollar
Most people don’t pay attention to their single dollar bills. You want a soda? You run down to the vending machine at work and get one, at $1.50 each. Do that everyday and you have spend $30 feeding a vending machine one dollar at a time and not even realized it. Better to by a 12 pack at the grocery store and take a can to work with you each day.
That is just one example of how to watch where every dollar goes because those dollars add up, quickly.
Earn Extra Money
Start doing something to make extra money, maybe sell things on Ebay, everyone has stuff around the house they can make money on. Or check out online sites like UserTesting, you can make $10 for every site test you perform and it is legit. I regularly make and extra $40 to $100 a month doing this, $10 at a time and I mainly only do it on the weekends.
Avoid paying fees
Never go to an ATM that is not your bank or one that will charge you a fee, $2 here $3.50 there. It adds up. Make sure you are paying your bills on time to avoid late fees, $20 to $45 / per payee adds up and that is just giving your hard earned money away to someone else because you are not planning and paying on time, no excuse for that at all.
Always Pay Cash
If you don’t have cash in hand, you can’t afford it. Stop paying with plastic. Paying with credit cards even debit cards don’t make a connection in the brain that you are spending money. If you don’t have cash in hand you have to tell yourself, you can’t afford it. There is no reason why you can’t wait until you have cash to buy someone, no, because it’s on sale doesn’t count.
Make A Change
Remember in order to stop living paycheck to paycheck you are going to have to make some simple changes or nothing will change. Albert Einstein said that the definition of insanity is doing something over and over again and expecting a different result. If you keep living like you are living, you will never stop living paycheck to paycheck.
A book I highly recommend to anyone who wants to get out of debt is “The Total Money Makeover“, it is a step by step guide to help you on your journey to financial freedom.
Tell me below what you are doing to stop living paycheck to paycheck.