Many of us live from pay check to pay check, that is, before the month comes to an end we’ve already run out of money and are struggling to make ends meet. It’s a stressful way to live ’cause you’ll always worry about all the bills you have to cover and everything you have to pay for.
If you’re in this category, you can’t even save, set money aside or handle emergencies so it’s important you get out of the paycheck to paycheck category.
The following are some steps to follow if you would like to stop living from paycheck to paycheck and have some savings;
1. Learn to budget
It’s one thing to have a budget, it’s another to follow it. To budget effectively, you have to track your spending and make plans for everything.
An effective budget puts everything in mind including emergencies, so you aren’t caught unawares when your car breaks down or a child gets sick. To create an effective budget, track your spending for two months, write down everything you spend money on, including emergencies and add a price for each, then set aside a particular amount for that month, stick to the budget.
2. Cut Back on Your Spending
3. Set Money Aside Each Month
Besides a savings account where you save up some money for rainy days, you also need an emergency fund account where you deposit a certain amount every month, this emergency fund is the key to financial freedom, when you have enough in your account, if anything unexpected comes up that digs into your money you’ll have the emergency fund to fall back on.