Tag: saving money

How To Stop Living Paycheck To Paycheck (For Good)

How To Stop Living Paycheck To Paycheck
Lets reach financial freedom together

We’ve been there. You want to save money but somehow it seems to be more difficult than it should be. Most importantly, you’re taking care of your expenses but have very little leftover before the next paycheck. As a result, you’re holding out until the next pay day. What if you never had to worry about living paycheck to paycheck again? The great news is that it is absolutely possible. Here’s how to stop living paycheck to paycheck (for good).

Look At Your Bank Statements & Budget

It is very important to know what you’re spending your money on. Look at your bank statements to see where you may begin to set limitations and write them down. Budget the amount of money you spend on eating out, on games or music, online shopping, etc. This will vary for each individual.

Cutting back on expenses will allow you to gain control of your routines and habits in order to pocket extra cash in case of any emergency.

Increase Your Income

There are many ways to increase your income. You may work for a promotion or raise, or take up a side hustle to earn extra money. For instance, by earning an additional $100-$300 a month will mean you’re up $50-$150 bi-weekly before the next paycheck. The catch here is to not fall into income creep lifestyle. Otherwise, you won’t be able to execute this properly.

Beware Of Income Creep

Income creep is when one lacks the will to retain spending additional income after a raise, sale, promotion, etc. As a result, you continue to live with the stress of never having enough. Income creep is the reason why people earning six figures a year also live paycheck to paycheck. If you continue to add or create more expenses as you earn more money, you will be stuck in this quicksand; a never ending loop. Delay your gratification and your future self will be glad you did!

Live Below Your Means

Living below your means is the responsible and most effective way to manage your personal finances. We’ve learned that this strategy goes hand in hand when you increase your income as they compliment each other very well.

So what does it really mean to live below your means?

To live below your means requires you to not increase your standard of living (bigger car, bigger home, etc.) as your income increases. Living below your means allows your expenses to stay relatively the same which opens opportunity to save money and invest it as well.

As you continue to practice these winner habits, you will gain an intuition and an understanding of when it is best to increase your standard of living. In the mean time it is very important that you learn how to stop living paycheck to paycheck first.

Increase All Your Monetary Accounts

The privilege to stop living paycheck to paycheck will depend on how well you manage your monetary accounts. As a result of implementing these strategies (budgeting, earning more income, and living below your means), earnings will roll over in your checking account due to the money consistently being replenished. By disciplining yourself to stay on this path, you will no longer be living paycheck to paycheck.

Stack the amount of money in your checking account in order to gain access to funds from which you can save and invest. In other words, increase all your monetary accounts. Tip: Pool money from your checking account into several accounts that will allow you to earn more income passively. More on that below.

If you’re curious on how to invest money in the stock market, check out this amazing post here. We walk you through step by step.

Other Means Of How To Stop Living Paycheck To Paycheck

Downsize

Stop living paycheck to paycheck by cutting back on rent and allow breathing room to save money by downsizing. Make an effort to seek the best options regarding your long-term success. Delayed gratification will come a long way.

Pay Off Debt

By paying off debt you open up opportunities and have a chance at experiencing financial growth. If you pay off a credit card, you no longer have to worry about the monthly expense. Say you owe a small amount on your vehicle. Get a payoff quote and eliminate that expense. By freeing up this money, you can beak the monthly payment into segments and pool it into checking and savings. Stop living paycheck to paycheck by eliminating payments to lenders every month.

Generate Passive Income

Generate passive income so that your small bills are paid. What if I told you the interest you earn in a money market account can literally pay your monthly Netflix subscription? We published a post on 5 guaranteed ways to earn passive income that will help you learn more so that you can take care of your bills without tapping into your earned income. Stop living paycheck to paycheck by earning extra cash on the side.

Make It A Habit

Make it a choice and a habit to stop living paycheck to paycheck. After all, it’s in your power. Implement these strategies in order to change your life and begin feeling what it is to truly be financially free. Go back in time today and secure your financial future!

How To Stop Living Paycheck To Paycheck

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6 Strategies To Building Wealth At Any Age!

A lot of you are inspired and motivated to take things to a higher level. By now you’ve realized that time is still on your side so you’re willing to take advantage of it. This is the single most responsible action you can take (especially in your early 20s) in order to achieve long-term financial success. Here are 6 proven strategies to building wealth at any age.

6 Strategies To Building Wealth At Any Age!

High Income Skill

Shift your focus on one source of income that will generate you enough cash flow to exceed your expenses. The goal is to earn as much as your abilities, skills, and knowledge allow you to so never stop learning. The value you bring to a company is the key to unlocking a high income skill. Find the average annual income in your country, now raise the bar for yourself and never settle for average. The higher your income is the more asset you have available as a tool to building wealth.

If you’re a business owner, keep selling!!! Increase your revenue so you may increase your income. Don’t take from the cookie jar if you have not increased your revenue.

Staying Debt Free

Staying debt free is an essential building block to building wealth. If you don’t have any debt at the moment you’re already one step ahead, now keep staying debt free. If you are in debt, begin planning to eliminate this burden as soon as possible. It will be a challenge and it will require discipline. Budget where you have to and apply the extra cashflow from you high income skill towards your debt. You will not be able to build wealth while in debt therefore this is a vital step.

Read:Debt Sucks | Here’s How To Pay Off Thousands In Debt

Live Below Your Means

Live below your means to build wealth

Do not fall for lifestyle/income creep. This occurs when your expenses increase as your income increases. The mistake most people make is spending their entire income which results in living paycheck to paycheck. Live below your means in order to avoid this unnecessary stress.

If you’ve earned a promotion or you’ve increased your sales, don’t use this extra money to blow on increasing your standard of living or materialistic things; it can wait. This practice is called delayed gratification. Instead, use this additional money to save and invest.

Saving Money

If the heading of this third strategy made you feel a little uncomfortable we’re making progress. You’ll have to step out of your comfort zone every time you set a new goal for yourself. Put money in a money market or high yielding savings account. Your hard earned money will multiply through compound interest. I highly suggest reading “The Importance of Creating An Emergency Fund and How To Start” to see how saving money is essential to your financial journey.

By stacking up your Richards you are paying yourself first. You’re not giving your money to a,b,c, & d companies anymore. You’re give it to yourself! It’s what you do with this money that ultimately makes it worth setting it aside. Grant Cardone says money is useless unless you use it. So use it by making money work for you.

Investing Money

Now this is the fun part! You’ve established a high income skill and you’re living below your means debt free; now it’s time to put your money to work for you. Do your research like your life depends on it to see which form of investment is best for you. Do your homework and study this as it will require a high level of confidence to buy assets that will both increase and decrease in value depending on the markets performance.

Your assets are your wealth. The more assets and less liabilities you have the more your net worth increases. Stocks can yield enough annual percentage to duplicate your money over a long-term period of time resulting in more assets. The more money you invest, the higher the return. It is important to understand that money you have to invest must be money you’re willing to lose as well. All investments have some sort of risk factor whether it be low or high. For this reason, it is necessary to be out of debt. Any loss you face will be only but a small dent in your pocket. Here are some ways you can invest your money:

  • Stocks / Bonds
  • REIT’s (Real Estate Investment Trust)
  • Real Estate (Property)
  • Businesses (Partnering up with people – Be the capital people need in order to start a business in order to earn a percentage of the companies profit.)

Earn Passive Income

This sixth strategy towards building wealth is a fun challenge. Determine what niche can earn you passive income at all times no matter where you are in the world. Use your high income skill to continuously grow this stream of income in order to provide a consistent cash flow which you can also use to invest. Your business mindset might establish a couple of these resulting in multiple streams of income. As Grant Cardone says, success is taken, not received. Here are a number of ways you can earn passive income:

  • Rental Property (Real Estate, Property Owner, Airbnb, Storage Rental)
  • Money Market Account or High-Yield Savings Account
  • Paid-Out Dividends
  • YouTube (Monetized)
  • Blogging (Ads, Affiliate Programs, Courses, Product)
  • Business Partnership Contracts

For more details on these subjects read: Earn Passive Income With These 5 Guaranteed Strategies.

Be Consistent

Build Wealth By being consistent

Keep increasing your income and continue to invest over a long period of time. Take advantage of your age and think about where you want to be in the next 10-20 years from now because it starts with what you do today. As long as you keep increasing your income, saving & investing, and living below your mean, you will have the power to build wealth at any age in your lifetime.

Yes, building wealth takes time. Nothing great happens overnight. Building wealth is something you must continuously keep working on. Every challenge you encounter will require a better version of yourself in order to find solutions to the problems you face. Your habits, hard work, and financial discipline will determine the course of your financial future. Keep learning, keep innovating, keep making it happen. Your future self will thank you one day.

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