3. Start a Savings Account
Saving money may not seem like an option when you feel like every cent you have is going toward some bill or living expense. If you want to stop living paycheck to paycheck and get out of debt, then you have to save SOMETHING. Even if you can only spare $5 a week to begin with – put that five dollars in a savings account and do not touch it. People who do not live paycheck to paycheck have a savings account with extra money in it. You need to think of your savings as a cushion. This savings will help you get through times when money gets really tight, or an unexpected expense arises. You can use your savings in situations like these, and you won’t have to touch your day to day money.
4. Work on Your Credit
Bad credit will not only hinder you from being able to get loans or credit cards, but it could stop you from renting a house/apartment, getting a job, and so many other things. Take the time to look at your credit score, consider your debts, and decide which ones you can pay off in a reasonable amount of time. If there are any debts on your credit report that seem incorrect, send in a letter to the credit bureaus refuting those debts. It may take a while, but if you put some real work in it – you could increase your credit score by 100-200 points.
5. Get rid of “Extra/Unnecessary” Expenses
At first, all your expenses may seem necessary, but truthfully there are probably several things you spend money on that you could do without. Entertainment expense are very often viewed as essential, but these expense are actually things you could live without. Consider canceling your cable TV/Internet, Netflix, Hulu, etc. accounts. Use your public library to read books, rent movies, and use the internet. In this day and age, living without internet and tv access may seem crazy, but the honest truth is that you do not need those things to survive.
Overall, being able to stop living paycheck to paycheck is definitely an achievable goal. Financial freedom is the best stress reliever there is. Hopefully these 5 Ways To Get Out Of Debt When Living Paycheck to Paycheck have inspired you to make some changes!