Advice on How to Live Paycheck to Paycheck

It's not fun and can be rather stressful when you are living paycheck to paycheck so many people do it now days. The financial guru's always tell us we need a nest egg of at least 6 months worth of wages. That can be hard, if not totally impossible, to do. We barely have money to pay the bills much less extra to into a savings account. Maybe you don't have 6 months wages laying in a nest egg somewhere, but you can start today with just saving what you can.

One thing I suggest do is write down every dime spent for one month and see where your money goes. you may find you are spending way more eating out than you actually thought. Maybe those coffee's every morning are really adding up. Knowing where your money is going is the first step in taking control of your finances. When living paycheck to paycheck you need to have some sort of control or your finances quickly become out of control.

Get out of debt. I would get rid of all credit cards. If you must, just have one set back for when you really need it and never use it. Start paying off your debt. You can start with the smallest one and pay that one off first. Even if all you can afford to pay is $10.00 a month that will more than likely keep the creditors away and they can see you making some sort of effort in trying to pay back your debt.

We sometimes have the tendency to spend money even when we know we don't have it. It may be Thursday and you know you get paid on Friday so you go ahead and write that check knowing full well you don't have the funds to cover it. Big mistake! You don't want to start off your next paycheck already in debt.

Put money back with each paycheck. Even if it is only $10.00 a paycheck put something into a savings account. Making some kind of effort to save will boost your spirits and give you some peace knowing you have a plan and a savings in progress.

Another important tip: if your income increases do not increase your cost of living or lifestyle. Any extra income you have coming in needs to be saved or put toward paying off debt. I think we sometimes get into this mentality that more money means we can buy more. That is definitely not the answer and will only put you in worse shape than you already are.

Another way to make living paycheck to paycheck easier is to pare down some of your expenses. Do you really need the higher dollar service on your satellite tv? Couldn't you get by with just the basic plan? What about cell phone. Do you need that high dollar smart phone and the huge bill that comes with it? What about canceling your Netflix subscription and just watch movies online. Take a good look at all your bills and see what you can trim. Another suggestion: contact your insurance agent and see if you can get a cheaper rate on insurance or double check your current policy. For example, I looked over my policy one time and noticed they had full coverage on an old pickup we had. That right there took a few bucks off our bill.

Another way I save money each month is to make a menu. It never fails when I go to the grocery store with no plan in mind I always spend more. When I take the time to check the pantry, fridge and freezer and see what we already have and then make menus from that I always spend less. Sometimes the simple things really add up to big savings. Of course, add coupons to your grocery trip to save even more money.

Leaving paycheck isn't fun but is something many people find themselves having to do. Making the most out of your paycheck by building a savings, paying off debt and watching where your money goes will help you get the most out of every hard earned dollar you make.