My friend Sandeep is working in the multinational company. His monthly salary is 1 lakh, but still, he is unable to manage his household expenses. It often comes to his mind that even when he was earning 50 thousand at the beginning of his career he was unable to meet expenses. Today his salary is doubled still he is unable to meet expenses. This is a common story for almost every salaried person. They live paycheck to paycheck.
If you are a salaried person living paycheck to paycheck and unable to save money in spite of good income this post is for you. In this post, I will show how you can stop living paycheck to paycheck and save money for your future.
How to Stop Living Paycheck To Paycheck?
(1) Financial Planning –
The first thing you need to do is financial planning. Financial planning is a process of meeting your life goals through proper management of your finance. Financial planning helps you to in planning your future very well.
(2) Pay yourself first –
You need to follow pay yourself first rule rigorously. This means you need to keep some money aside every month as soon as you get a paycheck. You can even think of making SIP in the mutual fund so that money gets deducted from your account automatically.
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(3) Track your spending –
Normally Paycheck to Paycheck situation arises as you are not giving enough attention on your spending. You should track and analyze your expense carefully. You should see where your money is going. You should try to evaluate if you can minimize your expenses.
(4) Take hard look at your fixed expense –
You need to take a look at your fixed expenses. This includes your utility bills and other household expenses. Sometimes paycheck to paycheck situation is arising due to lifestyle. You might need to adopt a lifestyle which you can afford. You need to switch from luxurious car to affordable vehicle.
(5) Separate out your wants and needs –
You need to separate out your wants and needs. Want is like good to have items and need is a necessity. If you are spending money on good to have items it is but natural that you will face problem in managing your finance.
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(6) Minimize use of Credit Card –
It is generally seen that excessive use of plastic money leads to financial problems. If you are living paycheck to paycheck you should evaluate your credit card expense. If possible you need to minimize your credit card usage.
(7) Take help from someone –
Taking help from someone will surely help you in coming out from financial problems. You can take help from a professional advisor or even your family friend, spouse, relative etc. Make sure he/she has knowledge in finance subject.
If you follow above rules rigorously you will surely come out from paycheck to paycheck situation.
