how to stop living paycheck to paycheck

4 Steps To Stop Living Paycheck To Paycheck

A lot of people are living paycheck to paycheck and have trouble saving even an extra penny. Does this apply to you too?

Then I’m sure you know how frustrating and uncomfortable it can be.

The good news, however, is that there are a few basic steps you can take to improve not only financially, but also mentally. Because no one wants to feel inferior because they’re struggling with money.

So how can you change your current financial situation?

How To Stop Living Paycheck To Paycheck In Four Easy Steps


The crucial initial step is to determine the difference between your income and your expenses. Start by adding up your income for three months.

Then go through your credit card and bank account statements to see how much money you’ve spent over that time.


Speaking of expenses… you probably don’t like to hear this, but if you’re spending more than you’re earning or exactly the same amount, it’s time for drastic measures. Such as limiting your spending on clothing, cosmetics or entertainment.

Anything that does not belong to household, food, transport or insurance costs can be reduced.

But it is important to remember that you do not give up these little pleasures forever. Only until you save enough to have at least one month’s salary in reserve. Or ideally three to six if you’re a freelancer. Once you’ve built up enough financial reserve, you can re-include previously discarded items in your expenses… but only gradually and only if you can really afford them.

What exactly does that mean? Your expenses must be lower than your income, and at the same time you should continue to manage to put money aside as a financial reserve.

Extra tip: Even in areas such as accommodation or transport, you can reduce costs. You probably won’t knock them down to zero, but you can limit them. In the area of accommodation, for example, by looking for a roommate or moving to a cheaper neighborhood.


Each time you are paid, deposit at least 10% of the amount in a savings account. If you have a permanent employer, set up an automatic transfer on the payday. If you are a freelancer or entrepreneur, manually transfer 10% every time you get paid.

The more common and automatic this step becomes for you, the more easy it will be to build up your savings and be able to get out of your lifestyle from paycheck to paycheck.


In addition to trying to limit your spending, also focus on increasing your income. Remember, there are limits to saving money. Even if you manage to reduce your monthly cost to zero, you’ll only save as much as you’ve spent before. But there are no similar limits to making money.

So ask for a raise, work on your skills, and think about how you could use what you’re good at to start earning more. For example, you can start by looking for extra time-flexible work. Remember again – you don’t have to do it forever. You only have to pay attention to it until you get financially well.

We have lots of resources on ways to increase your income, from job tips:

Proven Techniques To Get a Job Promotion

to tips on turning your hobbies into money makers:

How To Make Money On Instagram

to well-reviewed money making programs:

The Free Perpetual Income Training Program

Morgan Hewitt

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