Photo courtesy truthout.org
A recent study by CareerBuilder found that the number of people living from paycheck to paycheck has continued to increase from 2009. Their survey of nearly 5000 respondents found that 77% were just covering their expenses when each paycheck arrived. That’s up from 61% in 2009’s survey.
Does this describe you? Are you scrambling to cover the latest batch of bills when your paycheck arrives? Are you managing to save any money for the future or for emergencies? How about your upcoming property tax bill or your semi-annual auto insurance payment? Do you already have a large portion of that bill saved up, or are you wondering how you’re going to cover it when it arrives?
The answer to those questions can indicate whether you too are living from paycheck to paycheck. You should have a plan for saving toward anticipated future expenses. You should have an emergency fund established in preparation for unexpected expenses. You should be saving money toward goals such as vacations and your retirement. Creating a monthly spending plan can go a long way toward alleviating these problems. This plan should take a look at day to day, monthly, and annual expenses and address how to meet those needs with your current income.
You need to get this started as soon as possible. If you need some help, just give me a call or shoot me an email. I can help you get started on your path to financial freedom.