How to Stop the Paycheck-to-Paycheck Cycle

Almost everyone has caught themselves anxiously waiting for the next paycheck-counting days obsessively.

You may have received a shocking credit card bill. Or maybe you are supposed to get your car repaired soon. Or maybe you have a pressing need and you can’t wait for the check. You probably also fear that it will not be enough.

This is a common scenario for the 78% of Americans who live paycheck to paycheck. As soon as they get paid, the money gets eaten up by expenses and they go back to waiting for the next paycheck. It is like going around in circles and ending where you started-with no way out. But there is actually a way to escape this cycle. If you are tired of living like this, you don’t have to.

Create an Emergency Fund

Life is always taking unexpected turns. And that is one of the reasons that make it so hard to move forward. You may be prepared for all your usual expenses and then you’re hit with an emergency. Your entire budget comes crumbling down and the money problems begin. But you can prepare for these unexpected events and avoid all that.

Set aside an emergency fund, about $1000, to help you handle the money surprises. You can keep adding to the account.

Have a Budget