5 Things To Learn From Living Paycheck To Paycheck

February 11, 2021 | Emma Frost

paycheck to paycheck lessons

 

Are you living paycheck to paycheck? So are a lot of us in America. In fact, that’s how most Americans are living.

And if 2020 has taught us anything, it’s that living paycheck to paycheck is no fun. However, there are some lessons to be learned here, especially if you’re trying to leave it behind and achieve financial stability.

Here are the 5 most important things you should always remember about living paycheck to paycheck.

1. Lifestyle Creep Is Real

Spending money is easy. A person could be making a six-figure salary and still be living paycheck to paycheck – in fact, many do exactly that.

So unless you take active control of your money and start tracking your expenses, you can increase your income but still find yourself pinching pennies at the end of each pay period. The best way to manage your money would be to set up a budget

2. You Can Have Fun On A Budget

People often think of a budget as a deprivation mechanism. But the truth is you can still manage to have fun on a budget – it will just stop you from overspending on unnecessary things.

The truth of the matter is that you don’t even need to be spending money to have fun – watching a movie at home, visiting a friend, going on a hike, having a picnic in the park, are all relatively low-cost ways of having fun. And there are tons more options you can think of.

We, humans, are creative by nature – and that’s a strength we often don’t utilize enough. Trying to stop overspending is a great reason to start.

3. Handling Debt Smartly Is Paramount

Most of us have debt, and handling it smartly could turn our lives around. First things first – you need to know when to take on debt and what kind of debt it should be. Mortgage, for example, is a smart debt – if you’re not saddled with other kinds of debt.

Credit card debt, on the flip side, is risky and you should do your best to pay it off as quickly as possible. If you cannot pay off the cards at the end of each month, you shouldn’t own any, to begin with. And you shouldn’t own multiple credit cards – have one and paying it off at the end of each month is the way to go.

If you have multiple debts, you should look into debt consolidation so that you can put one payment towards it and save on overall interest. Especially if you want to start putting more money towards it to pay it off faster.

4. Start Saving Slowly To Make It A Habit

Saving any amount is better than not having any savings – but in the long run, you won’t be able to ditch a paycheck to paycheck lifestyle, unless you making saving money a habit.

The easiest way to do this is to automate your savings – so that a certain percentage of your paycheck is deposited into a savings account as soon as you get your paycheck, without you having to worry about it.

You can start with a relatively small amount, even just 5% - but it should be a monthly thing, and you should work to increase that percentage over time.

5. Financial Stability Cannot Be Achieved Without An Emergency Fund

When you have savings, you automatically stop living paycheck to paycheck – even if there are times you spend your entire income due to unforeseen circumstances.

In fact, an emergency fund is what enables you to take care of unforeseen circumstances without having to worry about money – and not worrying about money is the entire point of financial stability.

Sometimes large bills like house repairs, car repairs, or unplanned doctor’s visits hit us without notice – if you’re living paycheck to paycheck, these bills could ruin you. But when you’ve got an emergency fund you don’t have to worry about it – and that’s why setting one up should be your priority.

 

title loans emergency cash fast

 

What Do I Do If I Don’t Have An Emergency Fund?

Well, you should set one up, of course. But if you’re hard-pressed for money and the issue is time-sensitive, you need to get cash together as fast as possible – taking on a short-term fast loan, like a title loan, could be an optimal solution if you need something handled on short notice.

Why Choose A Title Loan?

Title loans are possibly the fastest and easiest loans you could take out – so much so, that the entire process takes on average around 30 minutes. You receive a title loan when you put up your vehicle’s title as collateral. You just have to make sure the vehicle is in your name and that the title is free of any outstanding loans.

The best part is you can apply for this loan regardless of how your credit looks. So even if you have poor or nonexistent credit, you can still apply. This is a big relief from more traditional bank loans that make you jump through hoops.

Where Do I Get A Title Loan In Nevada?

For title loans in Nevada, you need to go to our website and fill out the online form. You’ll be contacted by a loan representative who’ll set up a meeting with you at Nevada's nearest title loans location.

You’ll need to bring your car, your car title that is in your name and completely lien-free, and your government-issued ID or driver’s license to the meeting. The loan representative will assess everything and determine if you qualify for the loan. If you’re approved – you’ll get the cash the same day.

When it comes to living paycheck to paycheck, it doesn’t have to be completely stressful. Follow these tips – like getting title loans Nevada for emergencies – can help you handle living paycheck to paycheck while you work to get to financial stability.