6 Must-See Tips On How To Stop Living Paycheck To Paycheck

Do you have “too much month at the end of your money”? (Tom Hopkins)  It can feel that way sometimes.  You may feel like you are waiting for that next paycheck for relief so you can pay your bills.  Then you can relax for a brief moment.  Then it’s back to work for your next paycheck so you can pay your bills.  If you allow it, this could become a never-ending cycle.  You can stop living paycheck to paycheck and we will discuss some ways to get started today.

Stop living paycheck to paycheck through budgeting

Budgeting should be a part of your financial plan.  If you don’t have a budget, you can start today.  You have to first know where you spend your money.  Then you can determine what is unnecessary and work towards cutting your unneeded expenses.  For instance, you may have a large cable and internet bill.  You may be able to save money by having internet service only.  Then you could use a service like Netflix and/or Hulu to still watch your favorite shows.  Another idea is to use Kodi or Plex for your home entertainment.  This is just an example.  You would have to compare prices to see if this could work for you.

A great tool for budgeting is Mint.  This website offers a great place for you to track all your accounts for free.  You can also set budgets and track your spending.  You can track your home and car values.  You can track your investments.  It is a great place for you to see your financial picture in one place.  The website only has read access to your accounts so it cannot modify anything in your accounts.  Mint also has a free mobile app that you can use on your smartphone.

You may be able to identify spending habits you were not aware of.  Then you can take steps to correct them and help you stop living paycheck to paycheck.

Stop living paycheck to paycheck by paying yourself first

If you want to stop living paycheck to paycheck, you can pay yourself first.  If you have been paying bills and spending first, you may find that you have no money left at the end to save or invest.  It may seem like a difficult idea because you feel you should be concerned about paying your bills first.  I’m not telling you to not pay your bills.  You should pay your bills.  But we are talking about your future.  That is the most important.  In most cases, you always manage to pay your bills.  It’s the extra spending that you may do that empties your account before you can save.

So, you can begin by saving a small amount first, whatever feels comfortable for you.  You can set this up automatically so it always happens.  Then when you see your account, it is the amount minus the money you decided you pay yourself first.  Then commit that the money you paid yourself first is off limits.  Don’t touch it.  Act like it is not even there.  As it gets easier to pay yourself first, then you can increase the amount.

Then as the amount grows, you can adjust how it is allocated.  For instance, at the beginning, you may want to put it all into savings to build up your emergency fund.  But once you have built your emergency fund, you may want to split it up so a percentage goes to your emergency fund, another percentage goes towards investments, and another portion goes towards a fun fund.  The fun fund can ensure you don’t put too much stress on yourself to save and don’t allow yourself a little fun.  As your fun fund grows, you can reward yourself for reaching certain milestones that you set.

Stop living paycheck to paycheck by starting a business

Starting a business is not always easy, but if you can create a successful business, this can help you stop living paycheck to paycheck.  You paycheck is based on wages and a business is based on profits.  You may think wages are better because you see them quicker.  You do the work and then you get paid.  But “profits are better than wages” (Jim Rohn).

That is some great advice from Jim Rohn.  And you can learn more about starting a business thanks to this groundbreaking new book for entrepreneurs.

There are many benefits to starting a business.  You don’t have to quit your day job.  You can start a business in your spare time.  Then as your business grows, it may create enough income to replace your job.   And then you will see that profits are better than wages.

Stop living paycheck to paycheck with real estate

You may already have a retirement account and hopefully, you are maximizing the use of it.  Have you set a retirement goal?  Have you looked at your current investments in your retirement account to determine if it will meet your retirement goals by the time you want to retire?  This is a common problem that many people face once they reach retirement age.  And that is the worst time to find out that your retirement strategy did not work.  That is an awful time to find out that you have to work more years than expected.  Then you have to worry about outliving your retirement account.

Another option is to create passive income with real estate.  You can invest in single family rental properties to create additional income.  Over time, you can build a real estate portfolio that creates enough income to replace your job.  Or you could keep your job if you want.  The point is you could make enough income to cover your expenses.  And when you retire, isn’t that what you really want?  To cover your expenses and continue to live a great life without worrying about outliving your retirement account?

You may not like the idea of being a landlord but there are other ways of buying rental properties.  You can still enjoy your life while creating additional income from real estate when you work with a team of real estate professionals.  And this can help you stop living paycheck to paycheck.

Stop living paycheck to paycheck with education

Financial education is important if you want to stop living paycheck to paycheck.  You are getting a lot of good information here, but you can also continue to pursue education.  You can get education from books, courses, and other resources.  I always say, “the more you learn, the more you earn”.  College is important but this goes beyond college.  Most people don’t learn finance in school or college.  Typically, you learn it from your family and your friends.  But if they never learned it correctly, how can they teach you?  You have to go outside of your immediate circle and learn from the experts.

Stop living paycheck to paycheck with mentorship

There are many mentors available to help you in business, finance, and life.  You don’t think about it but everything is connected.  Improving your health can improve your finances when you spend less on unhealthy snacks or need less hospital visits.  When you improve your finances, it can improve your health because you are not stressed about debt and finances.  So if you are looking to improve your personal or professional development, you can access free mentors.  This can save you $1,000’s on personal and professional development.  And you can access them anywhere you have an internet connection.

As we wrap up, I thank you for reading this far.  This information can improve your life tremendously if you follow it.  Of course, it won’t happen overnight, but if you give it some time, you may find that you can stop living paycheck to paycheck.  And then you can stop stressing about finance and enjoy your life.