Economy
5 Tips That Could Help You Stop Living Paycheck to Paycheck
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More than three-quarters of Americans make ends meet by living paycheck to paycheck at least part of the time. Nearly 10% of high-income workers (at least $100,000 annually), for example, say they usually or often live paycheck to paycheck and nearly 60% say they are in debt.
It should come a no surprise that of the workers who have worked a minimum wage job, more than 70% said they could not make ends meet and more than half had to work more than one job.
The data were collected in an online survey by Harris for CareerBuilder.com and reported last week.
If high-income workers have trouble meeting expenses every month, people who earn less have even more trouble. Among workers who earn between $50,000 and $100,000 annually, 28% always or usually live paycheck to paycheck and 70% are in debt. More than half of workers earning less than $50,000 annually say they usually or always live paycheck to paycheck and 73% are in debt.
CareerBuilder.com has some tips that could help with managing personal finances:
Stick to a budget
It’s important to know where your money is going so that you can make some informed choices about what stays in the budget (rent, food) and what may have to go (dining out, travel).
Save for emergencies
The rule of thumb here is at least three months and up to six months of expenses set aside in an account to help you through unexpected expenses like a car breakdown or a lost job.
Develop a plan to pay and consolidate debt
You may be able to negotiate lower interest rates or more agreeable payment plans with you creditors if you ask. Pay off first the creditors who charge the most interest.
Learn how to manage savings for retirement
Try to learn what your retirement savings options are and figure out how to take best advantage of them.
Get a side hustle
There are ways that you can get odd jobs that fit your schedule and provide some extra cash. What are you good at and like to do? Play an instrument? Practice and form a band. Like team sports? Figure out a way to become a credentialed referee.
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