10 Super Easy Tips To Stop Living Paycheck To Paycheck

“I can’t wait for payday!” Does that sound familiar? Statistically, over 70% of Americans struggle financially, living paycheck to paycheck, and that’s a startling number. Nobody wants to live this way, and if you’re struggling, you’ve come to the right place.

Living paycheck to paycheck isn’t necessarily a bad thing if you have a paid-off home and a healthy emergency fund. But statistically, a large share of Americans don’t have any money saved for emergencies, which makes living paycheck to paycheck even more dangerous — one surprise bill and you’re in debt.

Let’s talk about ways you can stop living paycheck to paycheck and actually become the minority that prioritizes financial freedom!

1. Track your spending

The very first step you should take is to track your spending and see where all your money is going. This is called setting up a budget! Have you ever gone through a month and thought, “where did all my money go?” If you don’t track and pay attention to your spending, your money will seemingly disappear.

The process of tracking all your spending will probably take a few months to get a clear picture, but it’s critical that you do it. It’s proven that once your finances are documented, your paycheck goes further. A simple framework like the 50/30/20 rule makes it painless, and the free money dashboard keeps your spending and savings in one private place (no bank linking, ever) so nothing slips through the cracks.

Check out the best personal finance apps that can help you track your spending too.

2. Eliminate debt

Yes, this is easier said than done, but it’s one of — if not the — biggest reason people are drowning in bills and monthly expenses. Did you know the average American carries around $6,500 in credit card debt, and total U.S. consumer debt now tops $18 trillion? Trillion! With a T! That’s absolutely insane.

Getting a credit card and sliding into debt is so incredibly simple that it should be a crime. Do yourself a favor and opt out of all the pre-approval credit card mail, delete those credit card emails, and if you really want to escape the rat race, cut up your cards too.

If you’re completely drowning in credit card debt, a good move is to consolidate your cards into one manageable payment. But this isn’t a free pass to rack up more debt! If you consolidate, then you cut up the cards and never open another one. Our credit card tips and guide to escaping debt walk through the payoff strategies, and the debt-to-income calculator shows exactly how deep you are.

3. Pay yourself first

First things first: paying yourself first doesn’t mean spending money on yourself! It simply means that before you pay your expenses and go shopping, you set aside a certain amount into your savings or retirement. To do this, you need a budget in place, then determine how much you can set aside every paycheck.

By paying yourself first, you prioritize saving and force yourself to spend less on unnecessary things. This also helps build an emergency fund, which is absolutely critical to have. Life happens, and you don’t want it to happen when you have $0 in the bank — because then you’re getting into debt to fix that car or replace that broken sink. Keep that fund somewhere it actually earns, too; the where-to-park-cash tool compares high-yield savings, I-Bonds (currently 4.26%), and T-bills.

4. Automate your expenses

Did you know that roughly 1 in 4 U.S. adults don’t pay their bills on time? Paying your bills on time is more important than you think, and the consequences are bigger than people realize — late fees, dinged credit, and interest all pile up.

The average credit card late fee is around $35, and almost every bill has some kind of late penalty attached. If you’re juggling multiple cards or accounts, it’s easy to forget one and get hit with a fee. So, pay your bills on time. Always! — automating them is the easiest way to never miss one.

Consider using apps that track and remind you of upcoming bills. You can even lower your bills using services that negotiate them down for you, like Rocket Money (formerly Truebill) — here’s our honest take on whether Truebill/Rocket Money is safe and legit.

5. Sell things you don’t need

Not only do things accumulate, but clutter clutters the mind. And it’s money just sitting on the table! Take a look at things you don’t use or need, then sell them. You get to make some extra cash doing it. Think clothes, jewelry, baby items you’ve outgrown, electronics, and the like. If you don’t need it or use it, get rid of it.

6. Start a side hustle

If you’re living paycheck to paycheck, you essentially have two levers: trim your lifestyle or increase your income. Asking for a raise will likely make a marginal difference, but starting a second job or a side hustle can increase your monthly income substantially.

Some great ideas include driving for a rideshare or delivery app, waiting tables, freelancing, or just about any side gig you can get into. It might not be the most glamorous thing in the world, but it definitely helps you stop living paycheck to paycheck! You can also check out different ways to make passive income and a list of side gigs that pay really well.

7. Live within your means

Nobody wants to lower their standard of living, but do you realize that you are the one who sets your own standards? It might be a house that’s too big, clothes that are too expensive, or a car payment you can’t really afford. All of those are living standards that can be trimmed to help you live within your means.

Lifestyle creep happens when you get a higher-paying job or raises over time. People are tempted to just spend more as they earn more — but make it a conscious effort not to. That way, you can save more and invest for your future instead of just upgrading your spending.

8. Learn to save up for big purchases

Delayed gratification! Say it with me: delayed gratification!

That mindset will change your life. Instead of walking into a store, seeing a cool new laptop, and impulse-buying it on a credit card, go home and start saving for it. A $400 laptop can be bought in four months by saving $100 a month — no debt, no interest, no regret. The savings-goal calculator turns any purchase into a simple monthly number so you know exactly how long it’ll take.

9. Find someone to hold you accountable

This simple thing can really help you prioritize getting out of the paycheck-to-paycheck cycle. I’d recommend working with an advisor, relative, spouse, or close friend. Doing so increases your chances of sticking to a budget and controlling your spending, which in turn helps you save more each month.

This is exactly why professionals like personal trainers and nutrition coaches are so effective. The simple reality of having someone you’re accountable to really does help.

10. Change your mindset

Last but not least, your mindset has a HUGE effect on how you perceive your situation and how you react to it. Shifting to a saving mindset takes effort and, most importantly, time.

You get what you focus on in life. If you focus on positivity, getting out of debt, and taking charge of your finances, you can achieve it. By deciding that you want financial freedom, all that’s left is putting it into action. You’ve got this — one paycheck at a time.