toll of living paycheck to paycheck
All of this can be stopped if you want to do so
Making ends meet each month is a concern for many Americans, not only those on fixed or low salaries in the United States. A recent study found that even those making six figures a year were still struggling to make ends meet, despite having a substantial savings account. Read the toll of living paycheck to paycheck online beforehand.
Here are some suggestions that may help you escape the vicious cycle of low income from job to job and start making progress toward your financial goals.
Think about where you are right now
In order to gain a handle on your finances and start saving more, you need to know exactly where every dollar from each of your monthly paychecks is going. That’s the initial stage. One way to find out is to review your recent bank, credit union, and credit card statements. Don’t be in a hurry; take your time with this. Plunge in and read it all the way through, line by line. To begin your search for cost-cutting measures, examine the areas where it is most obvious that modifications can be made, such as unused subscriptions.
Identify and prioritise your spending priorities
Dedicate some extra time to thinking about the next year and the five to ten years beyond that and how your income will assist you achieve your goals. You can do this after you have a better idea of how much money you are spending on things like takeout food and other other items. Here you may plan for the long term, including saving enough to buy a house, get married, send your kids to college, and retire comfortably.
Maintain a strict budget
Even if you have tried and failed at budgeting in the past, it is never too late to try again. If the term “budget” makes you cringe, try thinking of it as a “spending plan” or a way to outline how your money will function for you this month or this year instead. Customers with access to Fortera’s Online Banking or Mobile Banking can take advantage of our Money Management function, which can help them set up and stick to budgets. You can also use a computerised or traditional paper-based spreadsheet to maintain your records. Create a column for each monthly outlay you incur, including housing, utilities, transportation, food, entertainment, insurance, and so on. Obviously, you’ll need to make some changes if your outgoings are going to exceed your incoming funds.
Start a savings account for when disaster strikes
The easiest and most efficient way to save money is to have some of it automatically transferred from your checking account to a savings account at your financial institution every time you get paid, or at least once a month. It’s simple to forget about something if it’s hidden away. Astoundingly quickly, your small savings will grow into a sizeable fortune.
Think about supplemental income sources
If you find that you are already in debt, you need to cease spending until you get out of your current financial predicament. Taking on more work, if you are able and have the time, may help you pay down your high-interest debt and free up some cash flow. If you want to earn more money in your current position, furthering your education is another option to explore. When you have eliminated your high-interest debt, your next financial priority should be to increase your savings rate.
All of this can be stopped if you want to do so Making ends meet each month is a concern for many Americans, not only those on fixed or low salaries in the United States. A recent study found that even those making six figures a year were still struggling to make ends meet, despite…
