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Paycheck to Paycheck Reality Check
by Kimberly
Danger
For those living paycheck to paycheck, the cycle
of getting paid only to have it spent by months’
end seems endless. You may wonder how you’ll
ever break free. It’s time to take control of
your own financial life and do something about
it.
Pay Yourself First
“How can I save when there’s nothing left at the
end of the month?” you may ask. Don’t pay
yourself at the END of the month. Pay yourself
first. Make it a priority over everything else.
If you’re not doing so, you’re stealing your own
peace of mind and financial security. Whether
you can save $50 a month or $500, like Nike says
- you need to find a way to JUST DO IT. Start
now, no matter how small your contributions. As
you get raises, increase your savings.
Recognize the Difference Between
Needs and Wants
So many people say they can’t possibly save any
more than they already do, yet they continue to
pay for things that aren’t absolutely necessary.
In today’s society, the line between wants and
needs is more blurred than ever. Today’s family
is digging themselves jeopardizing their
financial security buying “essentials” like
cable TV, cell phones, and a gym memberships.
If you can’t make ends meet, do you have or have
purchased any of these things recently?
Cable TV
Kids’ activities, including preschool
Preschool
Cell phones
Gym memberships
Salon services like manicures, pedicures,
tanning, haircoloring
Vacations
Dinners out (including fast food)
Computers and Internet (unless you’re working
from home, they’re a luxury too)
Big houses
New cars
All of the things listed above are wants, not
needs. You can get by without them.
Unfortunately most Americans today see them as
necessities, and aren’t willing to give them up,
even if it compromises their financial
well-being.
Fund Your Own Emergencies
Emergencies happen. Cars break down. Kids get
sick. People lose jobs. Those are simple facts
of life. It’s not a matter of IF they happen,
it’s more of a WHEN. Don’t act like a victim
when life happens to you, but instead be
prepared. Have the foresight to plan ahead for
the times when life kicks you from behind. Sock
away money for a rainy day, fund your own
emergencies, eliminate debt, and plan ahead for
your future.
By doing these three things, you’ll not only be
on the road to financial success, you’ll feel
empowered in the process.
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