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The Young Bankers’ Blog: Breaking the Paycheck to Paycheck Cycle


Getting your paycheck on Friday and not having any money leftover on Monday is not a good experience. Between paying bills, taking care of your home, and ensuring you have all your necessities, it can be tough to find ways to save money and not struggle until the next time you get paid, right? Unfortunately, this has been the norm for some of us for years and years, even before the pandemic. According to a December 2020 article by CNBC, 63% of Americans have lived paycheck to paycheck since the onset of COVID-19. For many, their income is just enough to cover their bills and necessities until the next paycheck comes along. Developing healthy saving habits can help avoid unnecessary spending and get you on a path to financial success.

Ready to break this cycle? Here are some steps you can follow:

  1. Create a budget: because, without one, it’s pretty easy to live paycheck to paycheck because you don’t know where all your money goes. The first step to creating a budget is totaling your regular income and subtracting your expenses. Doing this will show you places where you can cut back on spending so you can start saving! Consider utilizing an online budgeting app that connects to your bank account so you can see exactly how you are spending your money.
  2. Prioritize your spending: Focus on the things you need to survive. (Food, shelter, utilities, clothing, etc.) Once these are covered, tackle your other expenses next or put the extra money into savings.
  3. Limit impulse purchases: Save for unexpected expenses because these tend to take a big chunk of your paycheck. Try not to get caught up in the moment and give in to temptation. Learn to plan!
  4. Work on eliminating debt: You may feel like you can never get ahead because there is always some debt to pay off. Eliminate as much new debt as you can while paying off what you owe.
  5. Build a safety net: It may seem impossible to save when you live paycheck to paycheck, but this will help in the future. Creating a savings plan won’t happen overnight, but it is essential to start now; every little bit counts, and you will be relieved knowing that you have this safety net or money set aside whenever you may need it in the future.
  6. Cut back on overspending: Look for expenses you can eliminate, such as unused subscriptions or take out. Consider downgrading your cable or internet plan.
  7. Create another revenue stream: If it works for you and your family, consider creating another income stream. Find something you’re good at and that you love to do and turn it into a side hustle!
  8. Find an accountability partner: This may seem odd, but having someone who can keep you on track is essential for improving your life financially.

After implementing these steps, your overall stress level will decrease, and you’ll feel more financially secure.

Traditions Bank is your partner in financial success

From opening your first checking account to saving for the future, we’re here to help you on your path. Contact a member of our Personal Banking team today.

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