Are You Living Paycheck to Paycheck? You’re Not Alone!

According to a recent survey conducted early this summer by CareerBuilder, 42% of workers are having trouble making their ends meet and are living paycheck to paycheck. From this group, 14% of them are workers earning six figures, showing that every almost every demographic is having trouble saving money during since the recession. So if you are worried about your finances and savings, you’re not the only one!

CareerBuilder found that many are dipping into their savings accounts to make ends meet as well as reducing their retirement savings amounts. This may fix this short term problem, but it will cause a larger problem in the future!

With all the trouble everyone seems to be having with the economy, here are a few tips from on how to survive the economic downturn.

  • Look at your expenses carefully – Place all of your expenses into a spreadsheet and analyze what you spend each month. From your restaurant dining, bills, and shopping, you will be able to see more clearly where you can cut back.
  • Put money away no matter the amount – Set aside money each month for your savings even if it is a small amount. If you have trouble remembering, you can set up an automatic deposit from your checking account into your savings account through your bank online.
  • Take full advantage of your company benefits – Talk to your HR department and see if there are other ways to save with help from your organization. Become familiar with your benefits plan, sometimes they offer discounts to stores and services.

Click here for more tips on how you can stop living paycheck to paycheck! Do you have any other ideas on how to ride out the economic downturn? We would love to hear from you! Please comment below.

6 thoughts on “Are You Living Paycheck to Paycheck? You’re Not Alone!

  1. I have been in that 42% more then I like to admit. I have previously dipped into my savings account in order to make ends meet. Though I would have to say that I never thought to ask an HR department, and I had never expected to hear that they would give discounts toward stores and services.
    I do have a minor difference of opinion about the “no matter the amount.” I find for someone like myself a particular ‘required’ amount tends to help finding space for it in the budget, and as such the automatic deposit via bank fund transfers works wonderfully.

  2. I can certainly attest to having lived through times when I literally used every penny I had to make ends meet, even after cutting every possible expense out and to the bare naked bone, which I’m sure is the case with many people. But there are others who are living paycheck to paycheck who are just not aware of clever ways to save money. Apart from the suggestions already listed, I’ve used a few others:
    a) Every time you break a dollar, take the change and put it in savings.
    b) Put all found money in savings. A penny here, a dime there, in the parking lot or on the street, wherever. It may not add up to much, maybe $20 a year, but that’s $20 more that was easy to come by. Once you start, it gets to where you can’t go anywhere without looking for dropped change. Great places to find it: drive-thru lanes and carwash vacuum areas.
    c) After all the bills are paid, round the ending balance down to the nearest $5 or $10 then put the difference in savings.
    d) Find the very best deals on things you buy then put the difference between what you paid for it and what you would have otherwise spent in savings.
    e) Pay yourself for staying in shape…a nickel for every sit-up, a dollar for every mile ran.
    f) Match your interest payments. Each month, put into savings the same amount of money the credit card interest fee came to.
    And while these measures won’t make you rich, they get you in the habit of saving and make it fun.

    1. These are all great ideas! We especially like the idea bout rounding the end balance and placing the difference in a savings account. I think we will have to do a blog post that follows up with your ideas! Everyone deserves to hear about these saving tools!

  3. It is frightening to think that so many people are leaving on a short budget. I could not agree more with the article and strongly believe the number one way to avoid living under duress is to save, save, save. Even a few dollars adds up over time. Make a goal and work towards it, and avoid pulling from your savings account at all costs. With the current condition of the economy it is important for young professionals to start saving for retirement now. Doing so will eliminate stress and potential hardship in the future.

  4. A good suggestion to manage money is to not rely on your credit cards to pay your bills. If you do not have the money to pay the amount billed to the credit card, you will accumulate debt each month with interest alone. This will lead to spending more money than you would if living paycheck to paycheck.

  5. I agree. The number one thing I have learned in my financial management class this semester is to pay yourself first. Saving money is important in every chapter of life. From you first part-time job to your first full-time job, it is important to put your savings first and save a small amount of money each paycheck. This will ensure that you have an emergency fund if you ever need to fall back on it.

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