Miriam Caldwell, personal finance
specialists said t is important to stop living paycheck to paycheque so
you can begin reaching your financial goals. If your employer is paying
you with a prepaid debit card, it may be even more difficult to stop
living from paycheque to paycheque, but you can do it, she said.
She said the biggest thing you can do is
to learn to budget effectively. Anyone can write down a monthly budget.
It takes just a few minutes, and there are several different approaches
you can take to come up with your budget. But writing down a budget and
actually budgeting are two totally different things.
When you are budgeting effectively you
are tracking your spending, and stopping when you run out of money. An
effective budget has all of your expenses built into to it, so you are
not taken by surprise when your car registration and taxes are due or
when you have to pay your insurance premiums. This is the biggest step
in order to stop living from paycheque to paycheque.
Once you have established a working
budget, you need to begin to cut back on your spending she said. This
will free up money for you to get out of debt and to put into an
emergency fund. Once you do this, and get rid of your debt, you will
have money to spend each month. The challenge in the beginning is to
find ways to save in nearly every category. As you get better at saving,
you will be able to find even more ways to save and speed up the
process.
According to her, the biggest way to
stop living from paycheque to paycheque is to have money in the bank.
You can do this by putting money aside each paycheque. Once you have got
out of debt, you can begin building a larger emergency fund. This
emergency fund is the key to stop living from paycheque to paycheque in
the long-term. When you have a year’s worth of expenses in the bank, you
no longer feel the same worry and pressure as you deal with life’s
challenges.
Another way to stop living from
paycheque to paycheque is to get out of debt. Your debt is eating up a
portion of each paycheque. It can hold you back from doing the things
you want to the most. You will not get out of debt if you continue to
put money on your credit cards. You need to stop using your credit cards
until you are completely out of debt, even if you believe the rewards
are worth the credit card. This will help you to really control and
monitor your spending.
Your budget will help you find the extra
money you need to put towards your debt each month. Avoid taking out a
car loan or other types of loans until you have paid off your debt
completely. Your emergency fund can help you pay for car repairs and
cover other unexpected expenses so that you no longer rely on your
credit cards to get out of a tight situation.
By: HOPE MOSES-ASHIKE
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