How to Stop Living Paycheck to Paycheck For Good

What would happen if you missed one payment from your employer?

Would you be able to manage, or would you drown in financial despair?

According to statistics, most people in Canada and the United States wouldn’t be able to handle a situation like this, since roughly 53% of Canadians and 64% of Americans live paycheck to paycheck.

But what does living paycheck to paycheck exactly means?

An IntuitMint article defines this concept as:

“…spending your entire paycheck before your next pay cycle.”

For many reasons, this is not an ideal lifestyle. Thankfully there are ways to escape the rat race.

To stop living paycheck to paycheck, follow these steps:

1. Know your “why.”
2. Get to know your finances inside out
3. Create a budget that works for you
4. Set SMART Financial Goals
5. Pay off your consumer debt with the right approach
6. Build a solid emergency fund
7. Cut off expenses
8. Make saving easy
9. Earn more money