How To Stop Living Paycheck To Paycheck and Save Money (2024)

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So you’re here because you want to learn how to stop living paycheck to paycheck?

You might be wondering…

I’m living paycheck to paycheck! How can I possibly save money? :'(

I get it, it’s a tough spot to be in and I bet you don’t need me to remind you how frustrating and draining it feels!

On the first day, you THINK you can manage and things seem OKAY. Not amazing, just okay.

But by the second day, your car might decide to pack up. Or worse, someone you love gets sick and you don’t have the cash to cover the medical bills. Let’s face it, living paycheck to paycheck isn’t a good long-term plan. It can lead to financial stress and emotional burnout.

It’s no pretty image and I know EXACTLY how you feel because I was there once. Just like you, I hated living paycheck to paycheck! Growing up in a REALLY poor family, I lived paycheck to paycheck for over 75% of my life!

But I want to tell you that you CAN break out of this vicious cycle despite your current situation. Once you ditch living paycheck after paycheck, you can even start saving your first $1,000 fast. Who knows, you might even be able to save $10,000 within a year when you follow this 52-week savings challenge!

It just takes a bit of effort, time, and some serious dedication. It won’t be a walk in the park, but I know that you can do it! The good news is that it does become easier when you change your mindset and start forming good financial habits.

PIN(OR BOOKMARK) THIS PAGE: I’ll be updating this post so make sure to pin this image here and save it to your Pinterest board. That way you’ll be able to come back to this page and finally save money for a brighter future and stop living paycheck to paycheck!

Paycheck-to-paycheck statistics:

Here are some paycheck-to-paycheck statistics I found online.

According to CNBC, a study by LendingClub, it turns out that a whopping 62% of adults are basically living paycheck to paycheck. What’s interesting is that even though inflation rates have dropped from 9.1% last July to just 3.2% this year, many folks are still struggling financially.

How To Stop Living Paycheck To Paycheck

I know those stats sound pretty concerning and that’s why it’s about time for you to break out of that vicious cycle!

Here’s how to stop living paycheck to paycheck immediately!

Do you want exclusive tips on how to budget and master your money when you’re living paycheck to paycheck?

Join my FREE 7-day Master Your Money e-mail course to learn the EXACT steps I took to stop living paycheck to paycheck, get out of $50,000 debt, and save my very first $100,000!

1. Stop comparing yourself to others

Did one of your best girlfriends just buy a brand-new Hermes bag for over $12,000?

Did your mom’s friend’s son just purchase a new high-end Porsche for $200,000?

Oh wait, I forgot to ask… did he also purchase a brand new gorgeous 3,000 sq. ft. house for over $2.5 million like this one…

When we see how other people live a high and luxurious life, we can’t help but wonder why they have it so much better than us. What did we get wrong for us not to be living a similar life, right? But I want you to know that they’re not always in a better life. We don’t see it on the surface, but many of them are financing their luxury lifestyle through debt and living a life of deceit.

According to this article, 84% of Americans exceed their monthly budget. They tend to overspend, and many of the items they’re overspending on aren’t exactly a need.

What’s even more troubling is that more than half (51%) of Americans with debt let their balance roll over to the next month, accumulating even more interest.

While there’s nothing wrong with living a luxurious lifestyle, we shouldn’t lose sight of our priorities. Unfortunately, many prefer to keep up with their image than their finances. The next time you decide to make a purchase, ask yourself the following questions:

Am I living paycheck to paycheck because of this?
Will this add any value to my life?
Will it truly make me happy? Or am I just keeping up with the Joneses?
Most importantly, can I really afford it without living paycheck to paycheck or getting myself into debt?

So when you feel a little jealous of someone living in a big house or driving a brand new car, think about how it’s only the surface that we’re seeing.

More than that, I suggest not taking too much time on social media. It’s where people get to curate the images other people see. Someone might seem like they’re traveling all the time on social media, but the truth is they’re neck deep in debt. Don’t fall for those!

If you really want to maintain a certain lifestyle without living paycheck to paycheck, you will need to optimize your savings by learning how to stop spending money on things you don’t need. On top of that, you may also want to find ways to make extra money which is what I did for many years and it helped me save my first $1,000,000 in net worth in my 30s. These are the points I talk about next. I also give you a few hacks that I personally use to help reduce your monthly spending.

2. Find free money hacks

I wrote a separate post about legitimate ways to get free money to elaborate on this point.

For starters who are intimidated by finding ways to earn extra money, you may want to look for free money to get by.

Use reward programs on credit cards or at stores. But obviously, don’t rely on credit cards if you’re always feeling the itch to spend because that will keep you living paycheck to paycheck with debt.

Check if you can get money from the government like grants or tax returns. Look online for small jobs that pay a bonus just for signing up. Check if you left any money in old accounts or didn’t get back a deposit.

3. Earn PayPal cash (or free gift cards) to reduce your spending!

Let me continue my earlier point about free money.

We all love our little treats, right? Maybe it’s a Starbucks coffee for you, too. I won’t tell you to give that up ’cause life’s too short, and living paycheck to paycheck isn’t just about cutting back!

Instead of trimming down things that make you happy, you can get free stuff online, like sample products and even free gift cards!

When I was a broke student, I used a free rewards app called Swagbucks.

Swagbucks lets me earn free Starbucks gift cards – which allows me to redeem free drinks from Starbucks. And all I do is use the internet like normal, play some games, watch videos, shop, or take quick surveys. And it’s not just Starbucks, they’ve got loads of other gift cards including Amazon, Sephora, Walmart, and so much more! Check them out here!

Swagbucks is a 100% FREE resource and itonly requires your e-mail and a password to sign up. I highly recommend them to anyone who wants to earn FREE gift cards or FREE money to help reduce spending.

Swagbucks is 100% legitimate and has paid its members $506,312,447 to date!

👉You can get a FREE $5 bonus from Swagbucks here just by signing up through my link.
⭐️ Important: To claim your FREE $5 bonus, don’t forget to verifythe email from Swagbucks in your inbox!

4. Put your savings on autopilot

Did you know that I didn’t have to cut back on the small things that made me happy to start living a more financially stable life?

Well, let me tell you how I stopped living paycheck to paycheck and saved my first $1,000. It’s with this budgeting systemcalled the “reverse method” or “pay yourself first.”

It’s basically a system where your saving is on autopilot. Doing this means that you put your savings first and spending second.

To do this, you first put a chunk of your paycheck right into your savings account. You will only spend the rest of your money on your bills and expenses once you’ve reached your monthly savings goal. That way, anything you spend is guilt-free.

Many banks and apps allow you to transfer your paycheck into a savings account automatically, so you won’t have the excuse that you forgot it or just didn’t bother to do it.

For this method to succeed, you must start with a small amount. Don’t set a monthly savings goal that you know is not realistic. You can start with an easy goal and then gradually increase the amount. Over time, doing this will become second nature for you. Plus, you’ll stop living paycheck to paycheck, and you can even reach a $1,000 savings amount in no time!

If this sounds too overwhelming, though, there’s nothing wrong with starting small with a unique piggy bank to stack up your extra cash and coins.

5. Reduce your debt.

Debt is a cycle that’s hard to get out of.I know that even thinking about what has piled up is stressful, but there are ways to get out of debt fast especially if you put your mind to it.

The best way on how to get out of living paycheck to paycheck is to acknowledge what you’re up against. Make a list of everything you owe. Yes, credit cards, loans, and even money you borrowed from your friends. This is the scariest part, but acknowledging that there’s an issue to be solved is a big first step.

Once you’ve laid down everything you need to pay off, you should identify the least you can pay each month. This will help you get an idea of what strategies you need to do. Some prefer to finish off the smallest debts first so it feels like they’re getting wins every now and then. Others will focus on clearing out those with the highest interest to save money. It doesn’t matter what method you plan to use as long as it feels right for you and you’re making progress.

Every little bit counts. It doesn’t matter how small, progress is progress. It’s better if you can pay more than the least amount due each month, but it’s okay if you can’t. What’s important is that you’re seeing your debt shrink.

Remember that reducing your debt means that you will put in dedication, discipline, and time. Stay focused on the goal, and don’t be afraid to celebrate the milestones!

Related: Should I Pay Off Debt or Save Money First?

6. Start a blog to earn extra money.

This one might seem like a no-brainer, right?

Even though it’s clear as day, you’d be surprised how many people don’t want to put in the work to earn extra money. But hey, you’re not one of those, right? You’re a go-getter, a champ! You’re here ’cause you’re fed up and want to know how to not live paycheck to paycheck! And guess what? Just by reading this and looking for solutions, you’re already ahead of most people!

Now, here’s a solid idea for ditching the paycheck-to-paycheck life by bringing in extra cash – it’s a top choice for a lot of people in the same boat as you, including many of my readers.

If you regularly follow my blog, you’ll hear me talk a lot about many ways to make extra money so that you can earn more, save more, and live more. Just because you’re living paycheck to paycheck, doesn’t mean that you don’t deserve to live a good life. You NEED to find ways to increase your income if you want to save money while maintaining your desired lifestyle!

One really good way to earn some extra cash is starting a profitable blog – just like I did a year ago. It’s a type of profitable hobby that doesn’t require experience, and it doesn’t cost much to get going!

If you’re keen on learning more, sign up for my FREE 7-day email course below!

Just a heads-up, this isn’t some quick way to get rich. But making over $7,000 per month with a blog, like the one you’re reading right here, is totally possible if you’re serious and willing to put in the effort.

UPDATE: I wrote this article many years ago to help readers get out of the paycheck-to-paycheck cycle by teaching them how to earn extra money through a side hobby like blogging.
Today, I am in a much better financial position earning over six figures per year as a full-time blogger. I went from a hobby blog to an online six-figure salary in 18 months!
You can learn more about how to become a blogger and get paid. A lot of my readers are just like you living paycheck to paycheck who started profitable blogs to help them increase their income!

7. Find more ways to earn extra money

Aside from blogging, there’s a whole world of money-making ideas out there! These are exactly what I did before I started a six-figure blog and figured out how to earn on Pinterest as a beginner.

Selling stuff you don’t need anymore, taking part in online survey sites that pay you through PayPal, woodworking and flipping furniture for money, and so much more! These may not make you a millionaire, but they’ll surely give your budget a nice boost and help end the paycheck-to-paycheck cycle.

In fact, I received many emails from readers asking me how survey sites work, so I will include this side gig as my next point.

8. Take online surveys for free gift cards

Why take surveys online? What’s in it for you?

All top companies want to understand their consumers so that they can create the perfect products and services for you. For them to do that, they need to understand YOU and what YOU want. That’s why they are willing to pay you cash or free gift cards in exchange for your opinion. It’s one of the easiest and quickest ways to make extra money online with no experience required.

I’ll be honest though. You won’t become the next Bill Gates by taking surveys, but it can help make your spending more affordable. That includes paying for some groceries, filling up the gas for your car, buying birthday gifts for your friends, or splurging on your daily coffee without having to cut back on them. If you’re not looking for hard work, then this is one of the easiest ways to make some extra money when you’re living paycheck to paycheck!

How much money can you make from survey sites?

Anywhere from $50 to $100 (or more) per month depending on your eligibility and the number of surveys you complete. Here is one of my personal favorite survey sites to earn a bit of extra cash.

Survey Junkie:

Survey Junkie is rated 4.2/5, one of the highest on TrustPilot reviews.

I love them the most for their pretty-looking and easy-to-navigate interface. Over 5,000,000 users (including myself) have a great experience with them and I know you will too.

I do fewer surveys compared to the more active users but I was still able to make $58 in a month from it. Other members from TrustPilot reviews said that Survey Junkie allowed them to earn enough to pay for their monthly utility bills, so a little extra cash can definitely help with your living expenses.

They only require your e-mail address so it literally takes less than 5 seconds to start earning.

👉 You cansign up for Survey Junkie here for FREEand start earning extra money immediately!💵
They have over 10 million members and paid out more than $10,000 per day!

Make money with these other survey sites – Other survey companies I recommend as a way to make extra money from home include Swagbucks, American Consumer Opinion, MyPoints, and InboxDollars. Again, membership is 100% free. By signing up for many survey sites, you’ll get to take more surveys for more extra money.

9. Negotiate your job salary

Maybe the reason why you can’t figure out how to save money when you live paycheck to paycheck is because you’re not earning enough.

Do you think you’re doing more than you’re worth at work? If that’s the case, then it’s okay to want and ask for more. It’s a normal part of work life.

Don’t go in unprepared, though. It’s best to research what others in similar roles are earning. This way, you have an idea if you can go higher and what range you can follow when negotiating.

If you believe that you’re on the lower end and deserve to go higher, you can arrange a meeting with your boss to discuss it. But a quick tip: don’t do it just because you’re in desperate need of money. Before you set a meeting, make sure you’re showing everyone that you’re worth what you’re asking for.

I also suggest to schedule the meeting strategically. It’s best to set one after you’ve done a big accomplishment that really added value to the organization. You can use that achievement to make a stronger case for why you need to be compensated more.

Don’t be afraid to speak up and say your thoughts. Even a little bump up in your pay can help big time! After all, you are working hard for that money, so you deserve it.

10. Learn the basics of personal finance.

Let’s face it. Personal finance isn’t the sexiest topic and most of us avoid talking about it. Having said that, we ignore it and live our “normal lives” by frivolously spending it on everything and anything.

‘Cause you know… “you only live once.”

ANDDDD that is one of the main reasons why 62% of Americans are living paycheck to paycheck!

The majority of Americans say that their financial situation is only “fair” or “poor”. Although inflation plays a big part in it, many individuals still spend money they don’t have. This can be linked to them trying to cope with the stress of their financial situation, but doing that only leads to more problems in the long run.

These are things we don’t realize early on because we avoid the topic of personal finance.

Here’s a solution that may improve your financial literacy and boost your confidence…

A personal finance book that could change your life in 6 weeks!

To help you conquer your finances, I recommend reading Ramit’s best-selling book from Amazon, I Will Teach You To Be Rich. This is one of my favorite personal finance books for beginners and I recommend it to anyone who struggles with money.

It’s a good read if you want to get ahead and learn how to get rich in your 20s. But even if you’re in your 30s, 40s, 50s, 60s, or even 70s, this book will help you get out of financial stress!

With Ramit’s approach, you don’t need to give up fun to save money!

By following his guide, you are well on your way to ditching the vicious cycle of living paycheck to paycheck WITHOUT depriving yourself! I’ve read this book and it’s extremely straightforward. No B.S. and no fluff! As he says, it’s just a 6-week program that works!

11. Track your budget with my free printables.

Guess what? You’re probably a lot like me.

We were living paycheck to paycheck until we found finance whiz, Gail Vaz-Oxlade. Using her smart budgeting tricks, I stopped the paycheck-to-paycheck cycle and saved my first $100,000 by my mid-20s. By age 30, my husband and I built a net worth of 7 figures all because of practicing good money habits on a daily basis.

We want to help you nail your savings too, so we’ve made our version of a sure-fire budget plan that actually works!It’s all designed to help you stop living paycheck to paycheck.

It comes with a monthly budget tool that helps you keep tabs on all your money coming in and going out. It shows you exactly where your money’s going and what you’re spending it on.

We’ve also got this ultimate bundle, The Power Up Budget Binder to help keep your budget and savings on track. We made these free printables to give you quick wins and keep you pumped on your money journey.

12. Stop buying convenience all the time.

There are many ways to stop living paycheck to paycheck, but I think there’s one important thing that we ignore on purpose.

We’re always so busy trying to fit all our activities in 24 hours, so it’s easy to fall into the routine of buying convenience. Those quick-fix purchases seem harmless, but they’re actually one of the quickest ways to drain your wallet without you realizing it.

I know that it’s frustrating! I’ve been there. It’s hard to let go of these convenient buys because really, who wants to stress about what to eat or time constraints?

I don’t have time to make dinner. Food delivery!

I forgot to plan my trip. Last-minute services!

I’m thirsty but I didn’t bring my water bottle. Bottled water!

If you think about it, everything has a quick solution. It’s that easy to fall into the trap. But when I snapped out of it, I realized I was making excuses so I could go for the easier route.

So, what should we do to avoid buying convenience and save money? Well, for starters, packing your own lunch and bringing your own water will do wonders!

Even if you’re not the type to plan things, there’s no need to change your lifestyle so suddenly. Small changes will become big in the long run.

Oh, and before I forget, note that I said, “Stop buying convenienceall the time.”By that, I mean that there’s nothing wrong with buying convenience. There will be instances that we can’t avoid it. We just have to be mindful so that we don’t do it all the time and become completely dependent on it.

13. Save money on food

To avoid living paycheck to paycheck, I recommend finding ways to reduce your food costs by reducing takeout and saving money on groceries.

I know a lot of you are used to spending $10 to $15 on lunch every day (for some, that may even mean over $20 including a Starbucks drink). Some of you don’t have time so you spend another $10 to $15 on dinner. That was me too, so I started planning and making my own meals at home.

However, if you don’t have time to meal plan, I highly recommend this $5 meal plan service that will help you save time and money. This is simply a weekly meal plan service that aims to make your life super easy and stress-free!

For only $5 a month, you’ll receive a delicious meal plan that costs less than $2 per meal. In my post, 12 Things I Stopped Buying To Save Money, I mentioned that my fiancé and I saved over $15,000 in a year when we reduced our food expenses!

If you’re not sure whether this $5 meal plan service is right for you, you can test it out with their 14-day risk-free trial. If it doesn’t work out, you can cancel at any time without ever spending a cent. No questions asked!

14. Know the difference between income vs. wealth.

As theMillionaire Next Doorwould say:

“Most people have it all wrong about wealth in America. Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.”

PRO TIP: No matter how high your income, always remember to live below your means! If you really want to improve your lifestyle, you must find ways to increase your income (like what I mentioned in point #5 above)!

15. Build an emergency and savings fund.

Many people are one illness away from going completely broke.

Just ponder on that line. Even if you live paycheck-to-paycheck, you’re not completely broke. You can pay your bills and eat food, but what if an emergency happens?

It’s shocking, but did you know that less than45%of people in the U.S. can cover a $1,000 emergency from their savings? To put things into perspective, theaverage per-day cost of a hospital stay is more than $2,000.

Do you now see how important it is to have an emergency and savings fund? It should always be the first thing you build once you start earning money. It’s your safety net so when anything unexpected happens, even if it’s not medical-related, you have something to hold on to.

With an emergency fund, you won’t have to go into debt for any unforeseen circ*mstances.

Start by setting achievable goals each month. Set aside an amount that’s doable for you. It doesn’t matter if it’s big or small. What’s important is that you put it into your savings. Think of this fund as a non-negotiable, like your bills! That way, you’ll be more motivated to “pay” for it.

Remember that building your emergency fund takes time, but as long as you contribute to it, you can gradually grow it until you have enough to always cover you when something unexpected happens.

Trust me, your future self will thank you!

16. Manifest Money

I know what you’re thinking… “Will I know how to avoid living paycheck to paycheckjust by manifesting?”

Manifesting sounds ridiculous for many because they think it’s only about thinking about wanting something and like magic, it will appear in front of your eyes. If you believe it’s that, it really is absurd!

But manifesting money isn’t only about idle thoughts or wishful thinking. You need to have a purpose for it and believe it. Your intention needs to be clear. Yes, you have to visualize that you want it, but nothing will happen if you don’t take action.

This isn’t about sitting back and letting the universe bring you what you want. You have to freaking work for it and truly mean what you manifest.

But I won’t talk about the “action” part since I’ve suggested a lot of ways already.

What I want to emphasize with manifesting money is your mindset. This will not work if you don’t believe you can’t do it. When we’re living paycheck-to-paycheck, it’s hard to think that we’ll ever be able to get out of the cycle. But the more we think that we can’t do it, the more we won’t.

If you want to manifest money into reality, you have to act like you believe in yourself. That means adopting a more positive attitude and being more grateful for what you have. Trust me, if you start believing that you can do it, you won’t only manifest money, but a better life in general!

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