If you lost your primary source of income, would you have enough cash on-hand to cover your expenses for the month? Or are you caught in the perilous situation of living paycheck to paycheck?
While many people may be able to stay on-budget and resist the urge to overspend on their credit cards, few families have the peace of mind that they deserve when it comes to their savings cushion. This can leave people teetering much closer to debt than they think!
If a disruption in your earning power would put you at risk of going into debt or worse, these four steps will help you stop living paycheck to paycheck:
Spend Mindfully: Become more aware of how you spend your money throughout the week. Do you potentially overspend or buy things you don’t need? Consider using apps or a journal to help you track your spending habits. You may discover you do have room to save!
Re-budget: Barely have room to cover your bills? If you live on a tight budget, it’s time to diagnose why. Assess if the issue comes from overspending versus not making sufficient income to cover your needs. If you are facing a high or growing cost of living, you may need to find room in your paycheck to put toward a rainy-day fund or determine if you may need to increase your overall income.
Build Your Business: Your skillsets can be more profitable than you think. Many people decide to turn their passions into an additional source of income: some even go into business for themselves! Today, there are many business options that don’t require immense capital to begin. The boost in income also offers the benefit of flexibility. Many people find they are eventually able to transition into having this side source of income become their primary one!
Build an Emergency Fund: Take every opportunity to save and create an emergency fund. If you can create a fund large enough to cover one month’s unemployment, you will save yourself the need to worry about your next paycheck.
Bonus Tip: You don’t have to face this situation alone! Hold yourself accountable to your saving goal with the help of your trusted friends or mentor.
Learn more ways to increase your cushion at www.syncis.com/blog.