Broke ’til Payday? Avoid Living Paycheck to Paycheck!

We all heard it before, catch me on payday! Those infamous words from family members, friends and even ourselves are often uttered as it relates to unexpected expenses that arise between paychecks. Let the truth be told, if we lost our job today many of us would be out of luck.

So, how did we get here? Where did we make a bad turn? It could be that some of us simply refuse to live within our means. Sure, that couture dress was a hit at last year’s Mardi Gras ball. But, how much did it set you back? You had to get those designer shoes to impress her, but now you can’t remember her name.

Still, for so many Americans, the fact is that expenses are simply outpacing income. After paying mortgage or rent, insurance premiums, buying groceries and other needed household items; as well as making good on any number of financial obligations such as car payments, credit cards bills and student loans, we are left with way more month than money.

Whatever brought you to this point, it’s time to make a commitment to avoid living from check to check.

Live Within Your Means

Don’t make it rain if you can’t afford to make it drizzle! Trying to impress others with flashy gadgets and saying the drinks are on me are big “no-nos” if you simply can’t afford it. Be truthful, your friends will respect you more if you simply say, “It’s not in my budget.”

Create Different Streams of Income

Create revenue streams to rely upon. Are you good at photography or is makeup your thing? Whatever the case, many of us have a knack for something that can easily be turned into a moneymaking venture. Depending on the amount of extra income you are able to earn, the additional revenue stream can be used for any number of things: from padding a savings account, to paying down debt, to allowing you the opportunity to splurge on a special purchase every now and then.

In fact, if carefully nurtured, an extra stream of income, especially one that is derived by providing some product or service, can evolve into a full-fledge business that will go a long way in helping to achieve real economic empowerment.

Janice Pinera can attest that different streams of income make a huge difference. When she was downsized and left without a paycheck, she didn’t have to wonder how her needs were going to be met.

“Going from a steady paycheck to no paycheck at all, I was grateful I had several rental properties which provided a steady stream of income. After receiving notice, I begin to trim my expenses, eliminate debt, and was able to continue on with life,” Pinera says.

Save for Rainy Days

Set something aside from each paycheck. If you had trouble in the past saving, consider saving in your company’s 401k plan, which will keep your savings safe from impulse purchases.

Remember, Your Choice, Your Future!

Kemberley Washington is a certified public accountant and a business professor at Dillard University.  Follow her on Twitter or subscribe to her blog kembeley.com.

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One thought on “Broke ’til Payday? Avoid Living Paycheck to Paycheck!

  1. Pingback: No More “Katrina” …… Not being prepared is simply not worth the risk! « kemberley

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