Over half of the American public lives from paycheck to paycheck. In other words, these people are only one paycheck away from a certain disaster. The skyrocketing cost of living notwithstanding, this is not a good way to live, explains a cash loan provider in UT
One step away from a disaster
Life happens and, in most cases, it carries a hefty price tag. You may lose your job, or the car may conk out. Without an emergency fund squirreled away, you are just one step away from disaster. Ideally, you should put away at least three months’ worth of expenses for a rainy day if you have two incomes.
Make that six months if you are a single income family. With the current job market, you do not want to live off your credit card when the job search stretches for months. You do not need to have the entire amount upfront. Just put away a small amount each month until you hit the target.
Create a budget a stick it out
Most people are hesitant to create a budget, not because they do not have the money but because it brings out a series of uncomfortable truths. On listing your expenses, you are likely to discover how much money you waste on unnecessary items.
While initial stages might be an uphill climb, it gets easier with time. Best of all, the budgeting process lets you weed out unnecessary expenses, which enables you to build your emergency fund quicker.
Living from one paycheck to the next is a sure way to lower the quality of life. Luckily, you can take proactive measures to improve your money skills and limit your expenses.