HOW TO STOP LIVING PAYCHECK TO PAYCHECK (The Journey to Financial Freedom)
Updated: Aug 26
Hey BBN Networkers, It's the last week in August and we hope with all our heart that this is the last month you are going to be living below the standards and goals you've set for yourself.
Moving from financial illiteracy to financial freedom just takes a decision. A decision to be intentional about your finances, a decision to be prudent, a decision to not fall into the trap of immediate gratification but most importantly, a decision to live out the highest version of yourself.
Paycheck to paycheck doesn't cut it at all. We've got to level up and that day is today. Here are some steps you could incorporate into your daily life to get out of the paycheck to paycheck lifestyle. Here goes nothing:
Get on a budget: Last week when we spoke about the Importance of budgeting and how it helps you reach your financial goals, we listed all the benefits of budgeting and how it helps you gain control over your money. If you know your income and your expenses, It's very plausible to make good financial decisions as you spend, save and invest.
Take care of your utilities first: A couple of weeks back, we gave five steps to save money effectively and this is one of the points we spoke about and I will be careful to reiterate that. When your income comes in at the end of the month, it's easy to make your priorities offsetting some debts and solving a problem in the family. But the truth is these are problems cannot be saved in one day and after paying them off your electricity or rent would expire and you will be in despair. So make sure you handle your utilities first so that at least if you can't afford to attend your friends wedding in Croatia, you have a home to come back to. Lol.
Start an emergency fund now: Don't postpone it, start now. You don't how important this is until you stuck in a situation where you are let go from your job unexpectedly and it takes you about 2 months to get another. START NOW.
Start a side hustle: Multiple streams in income is the new especially when the pandemic hit. A survey ran showed that most employees who had to work remotely could afford to be actively employed in almost three jobs at the same time. This way you earn more and you save more and invest more.
Sell your stuff: You know yourself too well, You don't need half the things you have. Start selling them off and rack in some money. There are many great apps you can use for this. Vinted is a good one. Thank me later.
Live below your means: I know you want to afford those expensive trips or buy those Louboutin shoes but girl please, be broke now so you could retire at forty.
Until next time, Bye.