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How I Learned to Stop Living Paycheck to Paycheck

Living paycheck to paycheck is actually very common in the United States. In fact, you could say that most Americans live paycheck to paycheck. As many as 78% of Americans live paycheck to paycheck—that’s 8 out of every 10 workers. And it’s not just low income workers that are living this way, even many workers who make $100,000 a year or more report to still be living paycheck to paycheck. This tells us that living paycheck to paycheck isn’t a problem of money, it’s a problem of mentality or the ability to keep ahead of your finances.

Why You Want to Stop Living Paycheck to Paycheck

The big problem with living paycheck to paycheck is you don’t have any extra funds each month. This makes you vulnerable when disasters and emergencies strike. If all of your monthly income is being used each month then you won’t have any funds to lean on when you suddenly have to repair your house after a flood, or you need to move, or travel for a wedding. It also keeps you from saving for important things like,

  • Savings
  • Retirement
  • Car
  • House
  • Repairs and renovations
  • Emergencies
  • Tuition
  • Accumulating wealth

Assess why you are living paycheck to paycheck

There are many reasons to be living paycheck to paycheck, but it usually comes down to one of three reasons. Either you aren’t making enough money, you are spending too much each month, or you have essential spending like debts or housing that overtake your whole monthly budget. After you determine which of these three reasons applies to you, you can better determine how to fix your finances.

Basically you need to see what is overtaking your budget and readjust to be living within your means. When you are living within your means you are able to save which helps you live better later on in life. Living within your means and putting away into savings each month is how to budget for the long-term.

Get a new job

If you just aren’t making enough money to live on, then you need to get a better job, a raise, or a second job or side hustle that can help make up for the little you’re making where you’re at. There are lots of job websites out there right now to help you find a better job. There are also many programs that can get you the training, education, or certifications necessary to help you qualify for better paying jobs.

Control your spending

If the problem is your personal spending habits, then you want to deal with this by controlling yourself and your budget more. this may sound boring or depressing to have to control your spending so strictly, but think of it as figuring out how much you are actually allowed to spend each month, rather than focusing on how much you can’t spend.

Downsize the way you live

You also might need to adjust your living situation. You might be paying too much for rent, compared to how much you make each month. If this is the case than you might need to move so your mortgage or rent is more doable within your budget. You can also downsize other aspects of your life, like transportation. Downsize to a more affordable vehicle, or try carpooling or biking to work to save on gas.

Take care of debts first

If you have a lot of debts that are bogging your budget down, you can try debt consolidation with your bank to get a better interest rate or payment plan. You can also downsize the way you live so that you can pay off your debts more quickly.
The rest of this article was written by a guest author named Adam. He wanted to share with everyone some helpful tips that he’s used to stop living paycheck to paycheck. We hope you enjoy his insights as much as we have!

How Adam Stopped Living Paycheck to Paycheck

Sometimes, during the week leading up to payday, I find myself clinging for dear life to my finances. If I can just survive until I get paid, I think to myself, then everything will be OK. I go into crisis mode, axing all discretionary spending and hoping that no unexpected expenses pop up.

When my paycheck finally appears in the mail, I breathe a huge sigh of relief. And then I revert to my old spending habits—eating out, buying the latest gadgets, etc. A few weeks pass, and I’m right back where I started, panicking about making it to my next paycheck.

It’s a cruel cycle, like the spin cycle of a washing machine. But instead of coming out clean at the end, I would just wind up dizzy and half-drowned.

If any of this sounds familiar, you’re not alone. Thankfully, I found a way to escape the constant spin cycle and stop living paycheck to paycheck.

My Arch-Nemesis: The Dreaded Budget

Saving money does not come naturally to me, and money gets spent often without me even realizing it. I knew right off the bat that I was going to get nowhere without a budget.

Budgets take hard work and discipline especially if you want to stop living paycheck to paycheck. You need the self-control to resist making any unnecessary purchases, and you need the personal honesty required to separate wants from needs.

Taking a Long, Hard Look at My Spending

It was time to take out the old magnifying glass and look at how I was really spending my money.
I was shocked. Did I really spend that much money eating out every month? It was atrocious how much of my paycheck went to entertainment.

As soon as I had a strong grasp on where I was spending my money, I was able to craft a budget that accounted for my needs, and even made a little room for some wants (for the sake of my sanity).

My Game Plan for Dealing with Credit Card Debt

One of the big motivators for turning my finances around was that I wanted so badly to get out of debt. Over the years, my spending habits had been subsidized by various credit cards, and I’d built up quite a chunk of debt.

Thankfully, my credit card debt provided short term goals to help me along the way. Basically, I would zero in on one balance, keeping all other balances on the back burner. Once that one card was paid off, I felt the accomplishment of having achieved a goal, which helped me forge ahead with my budget.

Reevaluating Progress

Every six months or so, I take time to reevaluate my budget and spending, and make adjustments accordingly. As I’ve reduced my debt and added to my savings, things have gotten easier. I’m no longer living paycheck to paycheck, and I’ve even been able to fit in a few purchases for things I really want, like gadgets and such.

How did you stop living paycheck to paycheck? Leave your tips in the comments section below.

6 Advantages of Using Checks

checks are better
 
Lots of people are still using checks and for good reasons. Checks actually have their own unique advantages and features that you may be missing out on if you only use cash or cards. Here are the 6 main advantages of using checks:

  1. Checks are safer to mail
  2. Checks can’t be used by thieves
  3. Checks are traceable
  4. Checks aren’t deposited immediately
  5. You don’t need a bank account to cash checks
  6. Checks make budgeting easier

Lots of people are still writing checks. Writing checks may seem old-fashioned, but there are many advantages to writing checks instead of using cash or credit cards. Using cards and cash might be quicker and easier, but checks have features and security that cash and cards just don’t have. Below are some of the main reasons you want to start making good use of checks.

#1: Checks are safer to mail

Sending a check in the mail keeps your money a lot safer than sending cash through the mail. When you have a check inside an envelope it can be very difficult for others to tell there is even a check inside. But if you put cash in an envelope it can be much easier for others to tell there is money inside since bills have their own distinct shape, material, and color.

#2: Checks can’t be used by thieves

Checks are also less attractive to thieves than cash. Checks cannot be cashed by just anyone, and that is too much of a hassle for a thief. Thieves want quick cash and forms of money that are untraceable, and checks are neither of those things. Also, when you carry checks you don’t have to carry cash or cards on you, making you less of a target while you are out.

#3: Checks are traceable

This is another reason why checks are safer than other forms of payment—they’re traceable. When you use a check the bank makes a copy so you can easily prove the payments you’ve made. All the information you would ever need about a payment is also written on your check and the underlying copy. With each check you can know how much you spent, who you paid, when you paid, and even what you were paying for.

#4: Checks aren’t deposited immediately

Another attractive thing about checks is the timing. It usually takes businesses a day or two to actually cash the check that you’ve written for them. This means that you have a day or two to make sure you have the money in your account to cover the check. This can be risky to do, but as long as you handle your checks wisely, then you should be able to use this feature to your advantage.

checks are better

#5: You don’t need a bank account to cash checks

When you get paid through direct deposit you need to have a bank account set up. But if you get paid with checks then you don’t need to use direct deposit or a bank account. If you get paid with checks then you can just cash them, you don’t have to deposit them into a bank account or deal with electronic funds.

Check City offers convenient check cashing services for all of your check cashing needs. If you’ve been paid with a check you can come to any convenient Check City location and get that check cashed immediately. Check City will cash payroll checks, cashier checks, counter checks, government checks, insurance checks, money orders, tax refunds, personal checks, and even out-of-state checks. If you have a check, it is likely that Check City will be able to cash it for you.

#6: Checks make budgeting easier

Every time you write a check you are simultaneously writing your own personal receipt to go along with that purchase. These slips of paper can make budgeting super easy as you can keep those in your checkbook, and at the end of each week or month you can see an overview of all your spending in one convenient place.

Check Cashing with Check City

You may be wondering why you should come cash your check with Check City instead of going to your bank. Well, there are several reasons.

#1: Open Late

One reason is that our locations are open later than almost every bank or credit union. We have extended hours so you can come cash your check after work, or almost whenever you’d like. This makes it so you can get your cash sooner rather than later.

#2: Fast and Easy

Check City also understands how important your money is to you so we want to make sure the process of cashing your check is fast and easy. Our personable staff will make sure your transaction goes through as quickly as possible. As soon as you come in, we’ll be ready to help you and get you on your way.

#3: Low Rates

Check City also offers extremely low rates when it comes to cashing checks. We will not charge you much to cash your check with us, and the convenience of coming to one of our locations greatly outweighs the amount we’ll charge you to cash your check.

You Need:

All you’ll need to come cash your check at one of our locations is your check and your photo ID.

You Do:

All you’ll do is walk into one of our many locations, fill out a quick customer information form, and walk out with your cash in hand. Check City has locations in Utah, Nevada, Colorado, Virginia, and Maryland. At Check City, we want to make sure you get your money when you want it and how you want it. That’s why we offer convenient check cashing services that you are welcome to use anytime.

Cash Business Checks with Check City Too!

Check City also cashes business checks. This means that if people have paid your business in checks you can cash them easily here. In today’s credit driven economy, cash flow management is a challenging task for many small to medium-sized businesses. Check City has provided financial services to the public and its businesses since 1986 and we value the trusting relationship we’ve fostered with our communities ever since. Check City’s Business Check Cashing provides business owners immediate access to working capital by fast tracking the processing of checks to make your business funds available instantly. Cashing business checks at Check City is a great idea because there are 1) NO enrollment fees, 2) NO 3 to 10 day check processing holds, 3) the funds are available instantly, 4) gives your business the freedom to accept checks from your customers, and 5) we have convenient and professional locations.
 
Don’t waste your time thinking checks are a useless tool of the past. Checks are a useful financial product for personal and business use with their own unique features. Checks also provide a level of security in your transactions that cash does not. So don’t forget about this important tool in your financial arsenal and learn to use checks to their full advantage.

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