6 Tips to STOP Living Paycheck to Paycheck!
Nov 23, 2022
Do you know how powerful women are? Did you know when a woman is empowered, she can do great things?
I can hear you screaming YES in your mind….
So when women become empowered, they need to take control of their finances.
Our vision is to empower, educate, and evolve women to become financially literate and achieve financial freedom (we accept male clients by referral).
So what does women’s empowerment mean?
Women empowerment can be defined as promoting women's sense of self-worth, their ability to determine their own choices, and their right to influence social change for themselves and others.
When a woman is empowered in finances, she can make better decisions that creates generational wealth for herself, and everyone connected to her.
Today, women make 80% of financial decisions in the home, but only have 20% financial literacy or education to make informed financial decisions.
"Nothing bad happens when women have more money”, states Sallie Krawcheck, a former Wall Street Executive and the CEO and Founder of Ellevest
Financial feminism: stands for financial inclusion and equality for women, not only relating to earnings, but also to building and keeping wealth. This is our mission.
This month we are going to discuss tips for breaking the cycle of living paycheck to paycheck.
Even better, as my mentor Lynn Richardson states, “Check to Monday, meaning you paid on Friday and broke on Monday.
Of course, living paycheck to paycheck is very challenging. The thought of running out of money before your next check is even more stressful.
Did you know in America 61% of the U.S. population live paycheck to paycheck? Even among six figure earners, 42% live paycheck to paycheck.
When we look at the millennials, 70% of them live paycheck to paycheck. This may be shocking to you, but there are solutions to fix this issue.
So without further ado... let's talk about it.
Firstly...take a moment and ask yourself, why am I always running out of money or living paycheck to paycheck?
Look at your spending habits. Of course, give yourself some grace and do not be too hard on yourself. Maybe you don’t have enough money to cover basic living expenses. Maybe inflation is sky high. Maybe you are not tracking your spending and doing a “mental budget” versus following a written down plan. There are several factors to consider, but first you must take an internal look to see what your spending habits are.
We have 6 tips to help you improve your situation:
#1 Look at your budget and spending
If you are constantly running out of money, sit down and look at spending to see exactly where your money is going.
If you need help tracking your spending check out The Career Mompreneur financial planning & coaching services Silver membership plan goes over budget analysis where we analyze your budget based on your monthly spending habits and help you break the cycle of living paycheck to paycheck.
When you track your spending, the expense that may be causing you to run out of money will be obvious.
For example,we found some of our membership holders spending too much on living expenses like eating out at restaurants, shopping, taking uber, or entertainment.
#2: Try out a new budget method
One budget isn't suitable for everyone because each one of us is different. We have different spending habits, liabilities, sources of income, expenses and much more……
If you wanna try a new budget method, consider us as our system allows you to update your monthly budget and get a new improved budget to reach your financial goals.
This is critical because lack of tracking exactly where money is being spent leads to living paycheck to paycheck.
If you need further help, we offer 1:1 financial coaching session (s), there we will review your budget and discuss each line item to see where we can reduce some of your expenses to free up cash flow at the end of every month.
#3 Build a Solid Savings & Emergency Fund
It’s important to make sure you have a method for building a solid rainy and emergency day fund.
What if you lose your job? What if you have an emergency?
Do you have 3–6-month worth of savings to cover you until you find a new job?
A rainy day and emergency savings is a good way to stash money away for whatever life throws your way. If you are trying to find a way to stop living paycheck to paycheck, a rainy day and emergency savings fund could be the answer.
#4 Focus on cutting fixed expenses
If you need to cut back on your expenses, it’s best to start with your largest fixed expenses. For example, your rent or mortgage.
Ask yourself if this is an area you can cut back on by finding a cheaper apartment to rent?
Can you sell your expensive house and move to a cheaper house to save up money?
If you live in an apartment, consider having roommates to reduce the cost of moving to a place that is smaller to build up more positive cash flow each month.
Look at your grocery budget to see if you can cut back a little in this area. With the price of rising food costs, you may not be able to cut back at all, which is ok.
#5 Cut back on variable and discretionary expenses
In addition, automating your accounts is an essential way to save money. Set a bi-weekly or monthly automated savings goal to go into each checking and savings account.
Using automation will help you put money aside for your emergency and rainy-day fund. Another way to cut back on expenses is to shop around for auto insurance.
It’s important to find deals and reduce expenses such as insurance if possible.
After you consider all your fixed expenses, look at variable and discretionary expenses to see what you can cut back on to build a solid financial savings account.
Reducing how many times you eat out and cutting back to cooking at home can save you money.
Our MoneyPro System, sole objective of the financial budget is to make sure you have positive cash flow each month so you can save and invest into your financial goals.
#6 Bring in additional income
We all heard you need multiple sources of income. Sometimes all you need is an additional stream of income to increase your overall finances, especially after you try to cut back on expenses as much as possible.
Looking for a part-time or full-time job can help alleviate some of the financial pressures you have of living paycheck to paycheck.
Also, remote opportunities are a great plus if you can do it. Taking on another job may be a time commitment but remember to set expectations that you are doing this to create a positive cash flow and make ends meet.
Alternatively, you can ask for a raise at work during performance review time. Remember it’s important to always negotiate your salary. Write down special projects or things you have taken on to justify your ask for a pay increase.
So here were some of the ways I used to cut back my expenses and live a better life.
From looking at savings, building an emergency & rainy day fund to finding ways to add an income source, all of these tips will help you to stop living a Paycheck life.
Remember...making a few adjustments can make all the difference to boost your income.
I would like you to check out The Career Mompreneur Financial Coaching Plans and SUBSCRIBE TODAY so we can help you get on track. For a full customized financial plan and coaching sessions make sure you sign up for the Gold Membership Plan if you are looking for individual financial planning. For business owners make sure you check out our Platinum Membership Plan which is inclusive of both personal & business financial planning.
Here, we will definitely help you out to find a budget that truly works and understanding specifically what you need to do can make all the difference.
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