Overcoming PayCheck to Paycheck Living

  • Consolidate your debts

Especially when it comes to credit cards, they are budget killers. Finance charges can add up significantly if you have multiple cards. Seek for consolidating your credit cards in order to reduce the finance charges and also minimize the number of creditors that you need to deal with. There are many debt consolidation companies out there, but I will suggest trying it yourself by calling your credit cards and loan companies and hustle them for either a lower APR or providing you with a high credit for balance transfers. At the end, you want your credit cards reduced to one card if possible.

  • Downgrade

One major step that can significantly help you out of P2P living is downgrading. Do you really need that big Truck or can you get away with a regular sedan car? Do you really need that big house? Or, can you move to a smaller one or in an apartment?  Evaluate all the possibilities and shut down your ego. Always remember, once you solve the P2P living, you can always get back what you are removing temporarily. Forget the Jones; this is about you getting a handle of your Finance and your life.

  • Create Additional Income

Once you've trimmed out your finance and have balanced out the equation (Money In Greater than Money Out), now you should seek ways to improve your income. The reason is that you will need to create a great margin between your income and your expenses. This is the key to staying away from P2P living. The margin (extra money) is not for you to use with additional unnecessary expenses, but  rather for helping you not to fall back on P2P living when life strikes you down (i.e. unexpected medical bills, car accidents, house repairs, etc...).  I recommend stashing the money into an account that you cannot easily get into, in order to avoid temptation of unnecessary withdrawals (A Savings account without an ATM card, in another state, where you need to pay fee in order to withdraw... anyway, you get the point).

  • Have Patience, Faith, and dedication

I conclude with this reminder: don't expect to get out of P2P in one day, or even one year. Put your plan in action and have patience. The key is commitment and dedication. Stick to your budget and always keep your mind set to your goal: becoming debt free. It's not easy, but surely it's possible; I'm a testimony.

Good luck to you. Breaking free from paycheck to paycheck living lifestyle is one of the most mentally relieving achievement  that you can ever give yourself. I hope you’ll join us on the other side!

PS: Have any other tips or suggestions to break free from P2P living? drop a comment below for everyone. Let's get rid of this disease in our lives!


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