Living paycheck to paycheck simply means you are using most or all of your monthly income to cover your monthly expenses — with no money left over and no money in savings.
How do I avoid living paycheck to paycheck?
9 Ways To Stop Living Paycheck To Paycheck
- Track your spending.
- Make savings automatic.
- Put savings elsewhere.
- Take a hard look at your fixed expenses.
- Then turn to your want-to-haves.
- Save your raises.
- Choose someone to help you stay on track.
- Find your “why.”
What does it mean paycheck to paycheck?
Paycheck to paycheck is an expression used to describe an individual who would be unable to meet financial obligations if unemployed because his or her salary is predominantly devoted to expenses.
How should I spend my paycheck?
Following the 50-30-20 rule involves a few simple steps:
- Begin With Your After-Tax Income.
- Limit Needs to Half of Your Income.
- Allocate 30 Percent of Your Income to Wants.
- Use 20 Percent for Paying Down Debt or Saving.