Living paycheck to paycheck is not really living; it is more of struggling to survive. The stress levels of someone who finds themselves waiting for payday to come is much higher than someone who does not depend upon waiting for payday in order to enjoy life. There are many disadvantages to living this way.
Perhaps the biggest disadvantage is the fact that most people are not financially prepare for an emergency. When you are living paycheck to paycheck, saving money for a rainy day is probably not a priority. When a need arises you can quickly fall into financial ruin. Your car breaks down and needs an expensive repair, you suffer a medical emergency or a costly home repair happens and you have only your credit cards to fall back on.
A credit card could help you out of a bad situation but the problem is that after the emergency is over, you now have a higher monthly payment on your credit card to fit into your already tight budget. This is no way to live. The stress levels you felt have just risen because you were not prepared for an emergency.
The people who do not have credit cards often find that they have to go to family or friends in order to avoid homelessness or total financial ruin. This is another disadvantage of living paycheck to paycheck. No one knows what obstacles life will throw your way and not being prepared for them just adds to the daily stress of life.
The truth is that in today’s economy with the job market being what it is, you are probably thankful to have a job. The cost of basic needs is rising and even though you have done all you can to downsize your life, you still are not making it. The struggle to stretch a dollar is getting tougher and there seems to be no light at the end of the tunnel.
What do you do when you find yourself living this sorry kind of life? The solution is not an easy one but if you want to reduce your stress levels there are steps to take.
Financial experts tell people to track where their money is going. Once you see where you are spending you almost certainly will find waste. Cut out the waste and you will take some of the pressure off. Brown-bagging lunches and cutting out unnecessary expenses can help. Sometimes you can do this and still find that you are struggling.
The next step is to take on a part-time job in order to build up an emergency fund and catch up on your neglected bills. This is not easy and it is a sacrifice. It can be stressful but commit to doing this for a few months just to get yourself on better financial feet.
If you are living paycheck to paycheck and you feel like all you do is work to survive you need to find something that will help you feel like it is all worth it. Set a goal for yourself. A part-time job can help you to achieve a goal such as saving up money for a much-needed vacation or a nest egg that everyone should have.
In the meantime, look for ways to simplify your life. You may still be living paycheck to paycheck but if you can lessen how much money you need to survive it will take the pressure off. You may find that you can actually start to enjoy your life. The worries that go along with not having the money to do __ will disappear when you learn to live a more simple life.