Sound familiar? It seems that many families are living paycheck to paycheck. It’s hard to tell whether this is due to the current economic conditions or because most families are living well above their means. Either way, it creates a frustrating cycle that can overwhelm you with stress and worries, impacting every aspect of your life. While there may not be any easy solutions, there are a few things you can realize and learn to make your life easier.
The first step is gratitude. It can be hard to feel grateful for what you have when it seems like you have so little. It’s even harder when it feels like you’re just barely holding on to things like your house or car. However, you have these things nonetheless. Your decisions that led to your mortgage, your car, or your credit card debt may have been made during happier times. Still, remaining grateful and hopeful, even if you’re just scraping by, can help lift your mood. Along with gratitude, it’s crucial to carry an air of honesty and realism about your situation. Chances are, others are in the same boat, but many people spend their time pretending to be something they aren’t, which only adds pressure to your life. If you’re working to keep up appearances, it’s time to let that immature way of living go, so you can appreciate the moments you have.
Taking Control of Your Finances
The second thing you need to do is learn to scale back. If you’re living paycheck to paycheck, there is no doubt that there are areas where you can reduce your spending. Think about everything you do—where you go and what you buy. Do you really need certain things? Do you really need to leave the house every day, spending gas money and racking up incidental expenses? Do you really need to shop at your favorite grocery store just because you like it better? What we think we need and what we actually need are two different things.
If you have a family, consider that you’re teaching your children unrealistic expectations for living. This doesn’t mean you should skimp, but you should scale back. If you make it a game or a contest to see how much money you can save each week, you’ll be surprised at how much you can save.
Many people believe the solution to living paycheck to paycheck is simply earning more money. This is absolutely not the case. Even if you earned more, you’d likely spend more unless you first address your attitude about money. If your spouse got a new job with double the income, chances are, if you made no changes, you’d still be living paycheck to paycheck in a year. Instead of viewing money as the solution, focus on creating a family-friendly budget. Curb your extracurricular spending. Cut back on your bills. Talk to your creditors about lowering interest rates or debt. When you see some extra money in your bank account from being frugal, slide it into savings. Even if it’s just $20 here and there, it will add up over time. Plus, you’ll be building a small but useful nest egg to help when things get rough again.
Sit down with your family and have everyone give up one or two things that cost money. For mom, it might be skipping the nail salon. For dad, it could be cutting back on his Sunday golf game. Perhaps the kids would be willing to take a smaller allowance or reduce their movie rentals. Plan your meals and ditch all of the pre-packaged, expensive brand-name products. Make lunches, pack sandwiches, and be sure to find sales and use coupons. If you have something extravagant in mind, like a vacation, make a plan for it and involve the entire family. Unless everyone—spouse and kids alike—are on the same financial page, the plan won’t work. Be careful not to pass on your fear of money or lack thereof to your children, but instead, teach them how to live well on a budget.
You can’t just wish yourself into a new situation. You can’t pray to win the lottery or use the laws of attraction to manifest an inheritance. But what you can do is adopt a mindset of fulfillment. You can begin to see yourself as someone who has, rather than someone who has not. You can take proactive steps to improve your situation, starting with your thoughts. You can also learn new skills and use the pain of living paycheck to paycheck as a foundation for finding better ways to live. Remaining in a state of “woe is me” will only keep you barely scraping by. However, positive visualization and taking small steps toward improving your life will greatly influence the changes you desire. In other words, if you’re reading this article, then you’re already considering your financial state—and you should feel empowered to take control and make changes. Remember, it takes time and small steps to build a financial system that will support you. Stay full of energy and optimism throughout the journey.
Living paycheck to paycheck is nobody’s dream. While you’re not alone in the worry, anxiety, stress, and sleepless nights it causes, you are the only one who can change it. The economy may improve. You may make more money. Your financial picture may improve. But the true test of financial integrity is your attitude and your ability to keep your head up during times like these. Take responsibility for yourself and build a life of positive financial karma. Stay grateful and honest, and you’ll come out better for having faced these trying times!
