The paycheck-to-paycheck lifestyle can be so easy to get into and incredibly hard to get out of. Unfortunately, living paycheck to paycheck leaves no room for errors. Unexpected expenses just can’t happen – and that’s not realistic. To break free of this dreaded cycle, it’s best to take it one month at a time. This is the approach I take with my clients, and trust me, slow and steady wins the race. Before you can start getting ahead, you need to know what one month’s worth of bills actually looks like. Refer to your budget to figure out what one month’s worth of expenses totals out for you. If you don’t have a budget, start by listing all of your monthly expenses. Make sure you include your monthly debt payments and other necessary spending items (gas, groceries, etc.) as well. The total number you get is what you will want to strive for to have in savings. Once you have the total number you need saved, you can start working towards it!
Here’s a glance at this episode:
- [01:40] The first step in getting one month worth of bills saved is by reviewing your budget. Don’t have one? A simple list can do the trick.
- [03:45] High yield savings accounts can be a great option for saving up your one month’s worth of bills.
- [06:30] Be strategic with extra money that comes your way. Put it into savings to help you reach your goal faster.
- [07:11] You have your one month number saved…now what? You have a few options to make the most of this scenario!