Living paycheck-to-paycheck? Break the cycle!



Does saving money seem impossible? You’re not alone. Reportedly, more than half of Americans have less than $1,000 to their name.

While it’s hard to imagine keeping extra cash when you live paycheck-to-paycheck, there is hope. If you take a big-picture view of your spending habits, you’ll be surprised at the savings opportunities you might find.

Here are three reasons that may be preventing you from building a stronger financial future:

Here are three reasons that may be preventing you from building a stronger financial future:

1. You don’t track your spending If you’re feeling the pinch of limited income, tracking your spending habits is crucial.

Start by reviewing expenses from the past three months, and look for areas of excess.

How often are you buying coffee versus making it at home? Can you cut the cable cord and save? Re-assess necessities, too. Obviously you need groceries, but try trimming your bill with strategies such as choosing store brands over name brands or buying in bulk. Lastly, start tracking your expenses for 1 month. This will give you an idea of what you need to save towards an emergency fund. Remember, its a good practice to save at least 3 months of expenses for unexpected emergencies that may arise (i.e. unemployment, car breakdown, medical emergency, etc...)

2. A big appetite for eating out In 2015, Americans spent more money eating in restaurants than they did buying groceries at the supermarket. Eating out often, especially if you’re feeding a family, adds up fast.

One great way to save money is to simply eat at home more often. If you’re pressed for time, prepare meals during the weekend and defrost them for quick—and affordable—meals throughout the week. Make it fun, pick a theme each night, like taco or pizza night. Remember, buying ingredients at a grocery store can be a lot cheaper than eating out, plus leftovers can save you time cooking during the week!

3. The credit card curse If you rely on credit cards to fund day-to-day purchases, stop; save them for emergencies only. The interest and credit fees can drive up your monthly expenses, keeping you in debt longer.

Instead, go old-school and try to exclusively use cash. That way, if an impulse purchase costs more than what’s in your wallet, you won’t be tempted to buy it. Besides, you can work towards increasing your credit score by using the savings to better focus on making emergency credit card payments.

Need a little extra help reining in expenses or paying down debt? Seek professional financial counseling - visit www.skillz4life2020.com or call (757) 774-6953 for your free initial 30 minute consultation. Personal financial classes with virtual options available.


Disclaimer: All the information in this blog is published in good faith and for general information purpose only. It does not make any guarantees about the completeness, reliability and accuracy of this information. Any action you take upon the information you find in this blog is strictly at your own risk.