How to Escape the Jungles of Debt
Moving Away from Living the Paycheck to Paycheck Lifestyle
June 30, 2020 by Chevron Federal Credit Union
For most of us during our twenties, we lived paycheck to paycheck. The stress and anxiety of paying bills, covering rent, and affording food were real. The worst part – we get used to it. We convinced ourselves to be okay with doing enough to survive. We budgeted every penny, forgone any form of a social life, and were unwillingly living a “modern minimalist” lifestyle.
There is good news for those of us still in it. There is a financial light at the end of the paycheck tunnel. Here are six ways to moving away from the paycheck to paycheck lifestyle.
Splitting rent with housemates can take a tremendous financial load off your shoulders. Talk to friends, family, even look online for people willing to split the cost. It may not be your original plan, but it goes a long way to building your savings.
Cut the Cord
Almost every show under the sun can be found online now. There’s even streaming services for sports and live performances (when they come back). Do you really need that cable bill when you’re already paying for internet?
Teamwork Makes the Dream Work
If you’re part of a couple, getting ahead is going to take teamwork. Hording any finances tends to be counterproductive since anything off-the-books isn’t figured into the plan and can easily snowball. Work together to create a spending plan that allows you to each have your own discretionary treats.
Unleash Your Inner Gordon Ramsey
Creating a meal plan and cooking from home can save money on takeout, stifle pricey hunger grabs, and make for some fun family time in the kitchen. Check out our Meal Plans blog post for a few helpful tips.
The Dangers of Debt
We have an entire series dedicated to Escaping the Jungles of Debt. If you’re just continuing to make minimum payments on your debt, you’re never going to get to strong financial footing. See how you can aggressively slash away at your debt and free up money for savings.
Save for Future You
Now that you’re cutting down on your spending and your debts, make sure you put that money somewhere safe. The fastest way out of a paycheck to paycheck lifestyle is to have a healthy savings. Think of it as paying your future self for all the hard work you are putting in today.
Some attempts may not pan out. Keep trying. Stay positive. Improving your financial situation is a process so keep hammering away at it with a positive mindset and eventually you find techniques that will help get you to a financially healthier lifestyle.
BALANCE is an amazing resource for all our members to utilize when taking on life's milestones. With trusted guidance available for free, they are ready to help everyone on the path to financial wellness. This article and many more can be found on their website: balancepro.org.