In our current economy, more and more Americans are finding themselves in a situation where they are living from paycheck to paycheck. Living from paycheck to paycheck is very stressful, and even a small unexpected expense can leave you wondering whether you will be able to pay all of the bills this month. I heard that it was possible to save money while living from paycheck to paycheck, so I decided to take a closer look to figure out how it’s done.
Since there is little room for error in calculating your monthly budget when you live paycheck to paycheck, the first step to saving is something that will help you right away. Itemizing every expense that you plan to have in the current month will enable you to know exactly where every dollar is going. Once you have an itemized budget, take a look at it with a critical eye to see whether there are any areas where you can cut expenses painlessly. Some good examples include making coffee at home instead of buying it on the way to work and cooking dinner at home instead of getting takeout or dining out all the time.
If you can, try cutting back even more so that your new monthly budget enables you to live on seventy percent of what you earn. If you can do that, you will be able to save thirty percent of your earnings. You may have to make some sacrifices such as cutting out cable tv or buying your clothes at the thrift store, but it will be worth it in the long run. If your schedule permits, you could even take on a part-time second job or start your own very small business selling things on Ebay, doing odd jobs, or whatever you can think of. As your savings grow, so will your peace of mind from knowing that a car repair or broken appliance won’t prevent you from being able to pay the bills.