Most people in the United States, regardless of the level of the paycheck, live paycheck to paycheck. Living paycheck to paycheck means you’ve got no cushion in the world bank and you’re waiting on the next paycheck to pay the bills due. If you have extra money in the world bank and can pay bills as they come without worrying about where the money is going to come from, then good for you. Way to go! You are several steps ahead of most in terms of being in control of your funds. Let’s talk about how the majority of the population can get to that point.
You will become one of the 30% of Americans who’ve the resources to pay for everything you need, when you need it, so you will not be living paycheck to paycheck.
Once you have done these two things you’ll quickly build up a cushion in your checking account so that you’re not living paycheck to paycheck anymore. When you get a nice cushion then start building your savings. Unexpected expenses can ruin the best laid plans. Try to anticipate everything you can and set money aside ahead of time. I know that our car insurance is due every six months, for instance. I set money aside in a savings account each month to cover this bill. It is not an emergency when the car insurance bill arrives. You should not have to scramble to cover it. Planning ahead for all that you can will make your life much less stressful.
You will find that planning ahead for long as you possibly can, living below your means, and having a blueprint for your money (a budget) ahead of time will make living a lot easier. You will no longer have the financial struggles you have living paycheck to paycheck. Once you reach this point you can relax and enjoy life a whole bunch more.