How to Stop Living Paycheck to Paycheck
Know where your money goes
Some people swear by budgeting. Others are happier just tracking their expenses. Whichever you prefer, make sure you can see where your hard-earned money is going, right down to the last nickel. Keeping a careful eye on your spending is critical to getting a grip on overspending.
Make saving painless
What are your dreams? Whether they include a comfortable retirement, launching a business, putting kids through college or buying a new home, you’ll need to translate those dreams into savings goals to make them a reality.
Live on less than you earn
Well, duh, you say. But it’s not as obvious as it seems. When you spend less than you earn, you can save. If you spend everything you’ve got, you can’t save. And with no savings, it is nearly impossible to get ahead.The solution is simple, but it’s not easy: Stop spending money you don’t have.
Get comfortable saying ‘no’ to the kids
If you are giving in to your kids’ every request and demand, you are doing worse than just emptying your bank account and making it impossible to get ahead: You are teaching them it’s OK to overspend.
Cut your housing costs
Decisions about housing are super difficult. Traditionally, consumer experts have advised keeping the cost of housing at or below 30% of household income. Today, though, many Americans are spending more, and housing costs keep growing.
Drive a used car
Buying a new car is like throwing money into a rat hole. Unless you have money to burn, it is one of the worst financial moves possible. Buying a 2-year-old vehicle is a much better deal than buying new.
Learn to cook
It’s always been cheaper and healthier to cook at home than to eat out constantly. Unsure how get started cooking at home? You’ll find lots of guidance and tips at Money Talks News.
Forge an independent spirit
Some people save money easily and intuitively. Others must come to it through struggle. If you’re in the latter camp, becoming independent from the habits and opinions of your friends and family is crucial.