Search

How to Break the Paycheck-to-Paycheck Cycle in 8 Steps

Reset spending habits by restricting your spending to needs only. If you want to get out of the paycheck-to-paycheck cycle don’t buy everything your heart desires. When budgeting isn’t enough, look for ways to increase your income.
How to Break the Paycheck-to-Paycheck Cycle in 8 Steps
In this article

Are you living paycheck-to-paycheck and remain consistently worried about your monthly budget?

Here’s some good news for you! Now, you don’t have to live like that anymore. You can break out of this unexpected cycle and live a life where there’s financial freedom. It isn’t as complicated as it sounds, but it will take some time, effort, and self-control from your end. Here are 8 steps you can take to break the cycle:

Cozy cushion fund

Try to keep a little cushion in your checking account so you don’t have to live in fear of an overdraft fee. Why let your account get down to zero when you can save up an extra $100 or so? That way, you’re not sweating every penny or worried about ODs right before payday.

Budget always

Get into the habit of budgeting and plan your spending. You might not want to hear this but keep a reign check on your grocery shopping list, that can add up your expenses fast. 

Make a list and assert yourself ahead of time that you’re not going to buy every fun thing in sight. Be sure to walk into the store knowing exactly how much you want to spend. Have a budget planned for every time you plan a grocery trip and stick to that amount.

Failing to plan equals budget ruining. 

Don’t get impulsive

Though it seems tough at the moment, try to reduce impulse spending. Oh the joy of impulse buying! This is another thing that ruins budgets. The joy is temporary! Believe us!

If you struggle with this, try going from thinking, “I need this right now” to “I may or may not need this, so I’ll wait a week just to be sure” aka delayed gratification. Whether you are able to manage impulse buys or not, we don’t now. Just ensure that you don’t sink your budget.

Reset spending habits

Try using a bare-bones budget strategy for a month or two, wherein you restrict your spending to needs only. It’s drastic but it’s totally worth it.

Results? It frees up money for saving and paying down debt and eventually helps you get off of the paycheck-to-paycheck treadmill.

Raise the income bar

When budgeting isn’t enough, look for ways to increase your income. A lot of people resort to increasing their income by opting for side hustles. This will in turn help fix your financial situation.

Otherwise, talk to them bosses and request a raise.  Extra shifts and  overtime could help you find a little more financial stability.

Plan your payoff strategy

If you want to get out of living paycheck-to-paycheck then a credit card debt should be off your shoulders. Ouch! You read that right.

Having to pay interest every month is an unnecessary expense. But if you’ve already got credit card debt, use a payoff plan to wipe out your high-interest debt. 

Note down your debt total, monthly minimum and interest rate. Assess your budget to see if you can pay more than the minimum. Make bigger payments and you’ll eat away at your debt faster. 

Learn and keep learning 

Make time to learn about finances every week. There are 168 hours every week, so the odds of you finding 15 to 20 minutes to expand your financial knowledge are not too low. Nope! No excuses counted.  

Whether it’s checking a finance news site in the morning, listening to a podcast while in traffic, following reputable finance experts on social media, or sitting down to read a book about money management—the more you learn about finance, the easier it is to make healthier financial choices 

Make those sacrifices

Not everything you see in a store has to come back home with you. Accept that sometimes you have to make some sacrifices. If you want to get out of the paycheck-to-paycheck cycle you probably can’t buy everything your heart desires.

And you know what? That’s okay! It’s not the end of the world, it just means you know what’s worth spending money on and what isn’t.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎

Author

Picture of Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

Editor

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Side Hustles for Physical Therapists
Side Hustles for Physical Therapists
Are you eager to increase your earning potential in physical therapy? Explore a plethora of side hustle opportunities targeted to your talents and interests. Let's look at these fantastic options further!
Side Hustles for Physician Assistants
Side Hustles for Physician Assistants
Physician assistants have unique abilities that make them perfect for various side jobs. This comprehensive guide will help you discover exciting opportunities that align with your expertise and interests.
Side Hustles For Artists
Side Hustles For Artists
Explore a variety of artist-specific side hustles, including selling tangible things and photography, blogging, and event planning. These provide you with the opportunity to enthusiastically share your artistic work with the world. Let us know more!
Best Side Hustles For Therapists
Best Side Hustles For Therapists
This article discusses various excellent side hustles for therapists. Such roles can provide additional income and impart new abilities that are beneficial for progressing a career in therapy.
Best Side Hustles For Accountants
Best Side Hustles For Accountants
If you're an accountant trying to increase your income, consider freelance accounting. This flexible service allows you to maintain financial records for others. Additionally, offering financial advice or supporting companies with accounting issues can be profitable side hustles that leverage your knowledge.
Side Hustles for Couples 
Side Hustles for Couples 
Discover a variety of side hustles for couples, including blogging, virtual assistance, renting out space, and teaching. Read how these options help increase income and promote cooperation, communication, and shared goals, enhancing your financial and personal lives.
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: