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5 Reasons Why You’re Living Paycheck to Paycheck

Some of the reasons why you might be living paycheck to paycheck

Saving money might seem like an impossible thing to do. You aren’t alone in thinking that. You might have a good job with a sufficient salary to support yourself easily. However, you should have a sense of security with a good job and a good salary, but you struggle to save and pay your bills. Living paycheck-to-paycheck feels like an endless cycle, covering your expenses every month and having nothing left over to save or invest. If you are stuck in this cycle and tired of living paycheck to paycheck, read on and learn about some of the reasons why you’re living in this cycle.

Reasons Why You Might Be Living Paycheck to Paycheck

You Don’t Know Where Your Money Is Going

Many people don’t exactly know where their money is going. They don’t plan a budget or track their spendings. Without tracking and budgeting, you will almost always underestimate how much you are actually spending on your expenses. This is a very common problem in people that can easily be fixed by making a budget and tracking all your expenses.

You’re Not Paying Yourself First

If you don’t have any money saved up, it might mean that you aren’t really making saving a priority. Saving should be high up on your priority list. Don’t wait for the month to end, and put whatever you may have left of your salary into your savings account. You might not have any money left to save by the time the month is over.

Always make saving a priority and not a second thought. The best way to stop living paycheck to paycheck is to start saving up for real. This means that you should take a predetermined portion of your paycheck out and put it in your savings account whenever you get your paycheck.

Too Many Overhead Expenses

Maybe you are living too extravagantly for the paycheck you receive? You might be living a life that you can’t afford. Track and calculate all your fixed costs for a month. Fixed costs mean your rent, gym memberships, or anything you pay for every month. If these expenses add up to more than half of your monthly salary, then you have too many overhead costs. If over half of your monthly income just goes away on fixed costs, you will have nothing left over to save!

You Have The Credit Card Curse

Do you rely on credit cards daily? You shouldn’t. Credit card interests and credit fees can add up to a lot and will keep you in debt longer. You should try and use as much cash as you can for daily expenses. This will also stop you from making impulse purchases if whatever you want to buy costs more than whatever cash you have in your wallet.

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You Haven’t Set Any Financial Goals

Everyone should have financial goals set. They give you a set target to work towards and will also help motivate you to work harder. Both short-term and long-term goals can help a lot. Try and set a long-term goal of saving x amount of money in a year. You can then set short-term goals like putting up x amount of money towards your long-term saving every month.

Living Paycheck to Paycheck

The reasons mentioned above are the most common reasons why most people live paycheck to paycheck. Hopefully, after reading through this article, you can identify what may be causing you to remain stuck in this cycle of living paycheck to paycheck. Even if you aren’t living this way, this information could help anyone improve their financial status.

Riley Brown
Written By

Riley is a finance, lifestyle, and entertainment writer living in San Diego. He received his bachelor's degree in Journalism and Multimedia from the University of Oregon. His work has been featured in many finance and lifestyle publications throughout the US. When he is not writing, Riley enjoys reading and hanging out at the beach with his dog.


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