Expert advice to help you escape the paycheck-to-paycheck cycle
Forbes: half of those living paycheck-to-paycheck cited high monthly bills as the primary cause of cash flow issues
(InvestigateTV) — Around 78% of Americans say they live paycheck to paycheck, according to a 2023 study by Payroll.org.
Kionnie Epps, a financial educator from the YouTube channel “The Responsible Homegirl,” said the first step to breaking this cycle is to sit down and go through bank statements.
“You will be very surprised at what is coming out of your account on a reoccurring basis that you don’t know about. You know we sign up for the 7-day free trial and we don’t go back and cancel it, and now that is coming out,” Epps said. “Typically, we only think about the big bills – our rent or mortgage, our lights, our car insurance, our car payments. But no, I want to challenge you to actually go through your bank statements and look at what is coming out of my account.”
After the statement review, Epps said to critically and honestly ask yourself these three questions:
- Is lifestyle/spending above income level?
- Is there a need to decrease expenses?
- Can income be increased?
This could be the time to ask for a raise. Or maybe a part-time job or side hustle could supplement income.
“The second thing I would challenge you to do is really get in the habit of paying yourself first. We don’t prioritize our savings, that’s why we don’t have savings,” Epps urged. “And when I say save something, it doesn’t have to be $200. It doesn’t have to be $500. It can be $20. The average American doesn’t have $1,000 saved up for an emergency.”
She said saving just $20 dollars a week for an entire year will add up to more than a $1,000 saved by the end of that year.
Epps said start small and just get in the habit of doing this over and over again.
Copyright 2024 Gray Media Group, Inc. All rights reserved.
