Does it feel like your paycheck is gone the moment you get it? Here’s how to break that vicious cycle and make your financial goals a reality.
Are you stuck in the all-too-common habit of living paycheck to paycheck? You don’t need anyone to tell you that it’s a self-defeating cycle. You simply can’t get ahead this way.
But escaping isn’t easy, especially if your paycheck is tight. Change involves not just the hard work of making new habits but, at a more-basic level, changing your ways of thinking.
And yet people do make this leap. They pay off huge debts, reach ambitious savings goals and turn their financial lives around. If you intend to be one of them, read on for an eight-point road map.
1. Know where your money goes
Some people swear by budgeting. Others are happier just tracking their expenses. Whichever you prefer, make sure you can see where your hard-earned money is going, right down to the last nickel. Keeping a careful eye on your spending is critical to getting a grip on overspending.
Don’t worry: Budgeting and expense tracking need not be painful. There are many programs online that will walk you through starting a budget or an expense log and automate much of the process after that.
