Tired of Living Paycheck to Paycheck? | First Volunteer Bank

Last year, a CareerBuilder study found that 79 percent of full-time workers in the United States live paycheck to paycheck. Chances are that one or both of the people sitting beside you right now are living paycheck to paycheck—and one of them might even be you.

But our team at First Volunteer Bank wants to help you end the cycle of living paycheck to paycheck once and for all.

Building Better Financial Health

It’s physically and emotionally exhausting to live paycheck to paycheck. If you are or have been in that position, you know how overall exhausting it is.

Fortunately, there are steps you can start taking today to help break this vicious cycle.

Take a Look at Your Income

The workforce today is not the same workforce your parents worked in. Pensions and matching 401ks are not common. Even yearly raises are not guaranteed.

So what can you do? Well, part of establishing better financial health is having a solid understanding of how much money is coming in each month. So nail down the exact number—and then work to keep your expenses below that.

That’s where a budget comes into play…

Build a Better Budget

Do you have a budget? Or, a better question—do you stick to your budget?

Your monthly budget should include:

  • Car
  • Clothing
  • Extracurricular activities
  • Food
  • Insurance
  • Rent/mortgage
  • Utilities

Allocate each category a percentage of your total income, emphasizing the ones that are necessary for day-to-day life over the ones that are “wants.”

Once you’ve built your budget—stick to it. That’s the absolute key. Whether you rely on the envelope system or use an app to keep track of your spending, keep an eye on it. When you’ve maxed out a category for the month, it’s time to stop spending.

That’s the most important part of breaking the paycheck to paycheck cycle: You ultimately have to spend less than what you earn.

Tired of living paycheck to paycheck? First Volunteer Bank offers solutions to help you step toward better financial health. Contact us today!