Americans are living above their means, drowning in debt and the problem is getting worse. Many Americans spend their entire paycheck the same day or within a week of being paid. Many Americans live above their means, are in debt and have no savings. Here are 5 ways to stop living paycheck to paycheck:
1. Direct Deposit. Cashing checks at a check-cashing store costs on average 1% to 5% the amount of the check. Use direct deposit for free and save yourself some money.
2. Education. Further your education or take training classes to expand your skills at your current job. This will put you in a better position to get a promotion at work or salary increase. That money can be used to create a savings account, plan for retirement or pay down debts.
3. Budget. Stop using your credit cards and pay for everything with cash. If you don't have enough money to pay for expenses create a budget for yourself to determine your total monthly expenses and total monthly income and reduce your expenses (i.e. cable, cell phone, internet, etc.). Shop at discount stores, use coupons or carpool to find extra money which can be used to pay down debt.
4. Savings. You should have enough money saved to pay at least 3 to 6 months worth of bills. Open a high interest online savings account such as emigrantdirect.com or ing.com. Then develop long-term savings goals such as planning for retirement or homeownership.
5. Seek Help. Talk to friends, relatives or neighbors who have gone through similar situations. Go to the library to research various ways to reduce expenses. Many groceries stores teach classes on how to shop on a budget.
If you want to stop living paycheck to paycheck you have to change your thinking and see yourself being debt free.
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