The lifestyle of living paycheck to paycheck can become a dreadful nightmare.
A few years back I was working as a PA for a very successful artist, though I was earning good money, I was still constantly in a hustle and bustle to make ends meet every month.
The problem of living this way(paycheck to paycheck) is when an unexpected expense or an emergency sneaks up on you, you’re left with no choice but to rely on your credit cards burying you even deeper into debt.
That’s exactly what happened to me and I’m here to admit how stressful and frustrating it was. Every day felt like I was stuck in this never-ending spiral and that it’s just far too impossible for me to get ahead. I had so many plans on entrepreneurship but I couldn’t actualize any of them because I was the champion of debt. I was the top two champions of debt and I wasn’t number two.
Since you’re here reading this, there are chances you might be feeling the exact same way. I feel you on a personal level and I know how exhausting it can get.
While it may not be easy to fix this dilemma, it’s definitely possible for us to get ahead as well as manage to financially thrive. We just have to be willing to make a few tweaks in our lifestyle, stop a few money habits that are toxic to our growth, and take certain steps that’ll help us break from this cycle.
Here are the most likely reasons why you’re living paycheck to paycheck:
- You aren’t tracking your spending
Without tracking how much money you are spending, you’re likely to underestimate how much you spend in certain areas or even to forget some expenses entirely.
Keep your receipts and messages or connect your bank accounts and credit cards to an app that works out the expenses for you.
- Your cost of living is too high
In this case, it’s best to review how much you spend on your fixed expenses and look for areas where you can downsize.
- You’re not investing
Investing helps you make money from money and keeps you financially secure. You basically let your money work for you.
Why not grab the chance by investing with Carbon? You can earn up to 15.5% interest when you create an investment plan at Carbon.
- You buy everything on impulse
You see a nice pair of jeans at the store while buying some household items and you can’t resist buying them simply because you have money in your wallet.
Impulse buying can be extremely bad for you and your finances and it needs to be curbed if you want to stop living paycheck to paycheck
- You’re trying to keep up with other’s lifestyle
Constant comparison between you and your colleagues or friends is never a good idea as you’re bound to come across differences that make you see the need to catch up with them. That is not necessary. Focus on yourself, building your savings, and retirement fund.
There’s an old saying that goes “Patience is a virtue”. Being able to wait for something without being antsy or frustrated is a great skill to have. A skill needed most during a financial trying time as you’re trying to save.
You don’t need to keep spinning your wheels forever. Break the cycle of living paycheck to paycheck.