Major Reasons You Are Living Paycheck to Paycheck
By Toby Tunwase
Spending as you earn, without any savings at all, is the worst thing that can happen to your finances. The biggest problem you can have with your personal finance is when you live paycheck to paycheck. Although you might end up paying all of your expenses and bills from month to month, you end up remaining stagnant with little or no movement. Asides from this, you would not possess the financial capacity to withstand emergencies when they creep on you.
Why exactly is this happening? What are the reasons behind your stagnant monetary state?
- You lack a financial plan.
It is only with a financial plan that you will be able to set your pace and grow your finances.
- You have failed to monitor your expenses.
Although monitoring your expenses can be challenging, it’d help you stay on top of your spending. It is easier to lose track of it when you’re not paying attention.
- Your credit card is your best companion.
Having your credit card as your best companion will do you a lot more harm rather than the little good it might offer.
- You have spent your days trying to be someone else.
Chasing someone else’s lifestyle will do you a lot of harm and keep you living from paycheck to paycheck.
- You earn too small.
This also might be an issue. You do not want to earn too little. It keeps your choices minimal as regards to budgeting and saving.
- You are neck-deep in debts.
- You have the attitude to always make impulse buys.
- You do not have any plan to save or any investment at all.
When all these are resolved, you can as well say goodbye to living from paycheck to paycheck.