How To Stop Living From Paycheck To Paycheck

Many of us live from pay check to pay check, that is, before the month comes to an end we've already run out of money and are struggling to make ends meet. It's a stressful way to live 'cause you'll always worry about all the bills you have to cover and everything you have to pay for.

If you're in this category, you can't even save, set money aside or handle emergencies so it's important you get out of the paycheck to paycheck category.

The following are some steps to follow if you would like to stop living from paycheck to paycheck and have some savings;

1. Learn to budget

It's one thing to have a budget, it's another to follow it. To budget effectively, you have to track your spending and make plans for everything.

An effective budget puts everything in mind including emergencies, so you aren't caught unawares when your car breaks down or a child gets sick. To create an effective budget, track your spending for two months, write down everything you spend money on, including emergencies and add a price for each, then set aside a particular amount for that month, stick to the budget.

2. Cut Back on Your Spending

Now that you have a budget, you also need to cut back on what you spend money on. Budgeting requires starving yourself in some areas, if you normally spend money on snacks and soft drinks everyday, you might have to reduce it. If you like to sleep with the generator on till the next morning, you might have to be putting it off at an earlier time.

3. Set Money Aside Each Month

Besides a savings account where you save up some money for rainy days, you also need an emergency fund account where you deposit a certain amount every month, this emergency fund is the key to financial freedom, when you have enough in your account, if anything unexpected comes up that digs into your money you'll have the emergency fund to fall back on.

4. Get Out of Debt 

A good way to stop living from paycheck to paycheck is to pay up your debt. Debt has a way of eating into money and rendering what is left useless and holding you back from doing what you want.
Usually, by the middle of the month, I'm already broke and struggling to make ends meet not until I used this budgeting method to track my spending, budget and save some money. Read  2 Budgeting Methods To Help You Save Up.

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