How long can you survive without a paycheck from your employer?
If you’re constantly on the edge of your seat waiting for payday to arrive, you’re probably living like a majority of Americans who are experiencing the paycheck to paycheck syndrome.
Don’t worry – this is your year to change your financial story and live the life you imagined. It’s time to say RIP to living paycheck to paycheck and embrace a world of financial freedom. These 10 tips will help you get started in the right direction.
1. Always Pay Yourself First
If you pay yourself first, you’ll always be ahead of the game. If you pay yourself last, you’ll always be left behind.
Change the way you allocate your money and you’ll change how much money you have in your accounts.
When you receive your next paycheck, put some money aside in a retirement or savings account and stash some cash away for a rainy day before you pay your bills.
2. Understand Your Net Worth
Net worth is not the same as net income. Net income is what you make and net worth is what you keep. Many people live paycheck to paycheck because they focus on the income that flows into their account instead of their overall financial picture.
Redirect your attention. Start looking at your assets and liabilities to better understand your net worth and how you can use your net income to positively impact your financial position.