How to Live Paycheck to Paycheck… The Right Way?

One hundred twenty-five million U.S. adults have little to no money to save. That means 54 percent of Americans are living paycheck to paycheck. And that's not just folks below the poverty line or making minimum wage.

One in every two Americans earning between $50,000 and $100,000 annually also live paycheck to paycheck. The study shows that 18 percent within that income bracket struggle to pay their bills. But even thirty-nine percent of consumers with an annual income of over $100,000 still live paycheck to paycheck.

It means spending all your income every month. Regardless of your earnings, if your costs are higher than or equal to your income, and you struggle to save anything at all, you're living paycheck to paycheck.

Living Paycheck to Paycheck

How Did it Become a Normal Lifestyle?

Lifestyle inflation drives people toward living paycheck to paycheck – spending more when your income increases keeps you strapped for cash.

The two main financial problems that force people to live paycheck to paycheck are income and expense problems. You must solve these two issues to save money.

How Can you Still Save Money?

#1 Solve Income Problem

Increase income at your current job by adding extra skills or if you have to, picking up a side hustle. If you're willing to put in your time and effort, there are many ways to bring in extra income.

High earners struggling for cash have expense problems. They're spending too much money beyond their basic needs.

#2 Solve Expense Problem

You can continue living payday to payday, but you must also build necessary budgets like sinking funds, retirement, investment, and emergency fund into the expense category.

How to Do it the Right Way?

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