According to a recent post by MarketWatch: “Half of American working families are living paycheck to paycheck“. According to that same report, 1 in 5 have nothing set aside to cover an emergency, and nearly 1 in 3 (31%) don’t even have $500 for an emergency. Those numbers are staggering! Why would half of the working families be living that way? Why don’t they have more money saved? What about you and your family and your debt load. What has become the custom in your family…putting money away from your paycheck first or…spending every penny you have as soon as you have it and then some? According to that title…most of us aren’t saving and preparing for the future purchases or emergencies as we should be. So let’s focus on the half that are living from paycheck to paycheck, “the working broke” and let’s reverse engineer what a financially savvy family would do and copy their actions.
One thing is certain – nothing changes until we change. It has been said: “If we keep on doing what we’ve been doing…we’re going to keep on getting what we’ve been getting”. How is it possible to turn things around and change our spending habits? After all we’ve been handling our finances like this for years. We have to change what we do and attack the problem head on. Keep in mind that every day we make a choice…we either choose to be broke financially or prosperous financially by the way we use our available resources. Here’s one plan of attack to turn things around right away.
Imagine what would happen if you started (1) paying yourself first (have the money taken directly from your paycheck before you receive it) (2) taking steps to eliminate your unnecessary expenses, and you (3) worked to trim your monthly expenses. That would compound your savings rapidly and would help you to get very quickly to Baby Step #1 ($1000 Emergency Fund) that Dave Ramsey preaches and teaches in his Financial Peace University Course . How would that change things for you…having an emergency fund starting at $1000 and building up from there? Would that give you some confidence and allow you to be ready for life’s emergencies that we all have. Remember if you haven’t had one…just wait, it’s coming! It’s best to be prepared and proactive rather than reactive, and the time to start is right now Don’t Procrastinate any longer-Do it now!! Get started saving and gathering your funds up so that you can get to that step as soon as possible.
How quickly do you think that taking this massive action would help turn things around in your financial life and help you to get back on track? Focus is the key: “Whatever we focus on expands”.
To Get Your Emergency Fund Quickly:
- Work more / extra hours on your current job (sell your vacation or sick days)
- Get a part time job ( side hustle )
- Have a yard sale (sell everything you haven’t used in a year or two). Buy items low and resale them higher at a flea market
- Temporarily change your withholdings at your job so that less tax is taken out
- Start Selling Online
- Adjust your 401k to the lowest amount that the company will match… temporarily
- Cut Your Grocery Bill…here’s how
- Read article on 14 ways to cut expenses…Click Here
- Definitely Read This Book…no questions asked if you’re serious
- Get a “debt reduction friend” for encouragement (share this post with them)
What do you think about this plan of action, do you think it’ll work? Leave us some comments below and tell me what you’re planning on doing to make a change in this area.
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