In the first article in the series, I covered eight things that might cause you to end up trapped in a paycheck to paycheck life.
In this second post, I’m going to show you a few things you can do to get your finances under control, stop spending more than you make, and end the paycheck to paycheck cycle for good.
Once you understand those reasons, I explained that it was important to get your mindset right and take a deep, honest look at what is really causing the problem.
Those are the two things you absolutely must do before moving on to the strategies below that will help you ultimately solve your problem.
4 Tips To End the Paycheck to Paycheck Cycle
Once you’ve reached this point in the process, there are four things you should be doing to get off the paycheck to paycheck treadmill (depending on your situation, you may need to do some or all of them):
- Put Together a Plan- Lasting change is not going to happen without a solid plan. Winging it just doesn’t work! Make a written plan for how you’re going to get out of debt (Here’s how to do that), and then work that plan. It’s very difficult to change your financial habits if you don’t have a plan.
- Find Ways to Increase Your Income- Even if you’ve already cut expenses to the bone, sometimes it can still be hard to make ends meet. The best way to fix that is to find ways to make more money in your present job, start a side gig, get a part time job, or even a combination of these.
- Get Out of Debt ASAP- Debt is a choice. It drains away your hard earned money through interest and fees, and prevents you from getting ahead financially. Doing what it takes to become debt free is the best way to start becoming financially successful. My get out of debt course can show you how.
- Do a Monthly Budget- It’s impossible to truly know what you’re spending unless you keep track. A monthly written budget helps you understand what’s coming in, what’s going out, and allows you to see where the money leaks A budget is absolutely essential.
The Paycheck to Paycheck Life Stinks!
Most of us, especially those in the middle class, have been getting hammered for the last decade or so with stagnating wages and increasing prices. But that’s no excuse for not being able to succeed financially.
You just have to take massive action and be diligent toward your goals.
You have to become relentless about learning how to overcome the paycheck to paycheck monster and keep it from rearing its ugly head ever again.
IT IS POSSIBLE, AND YOU CAN DO IT!
Have you been using any of these strategies to improve your finances?
Leave a comment and tell me what has worked and what hasn’t worked.