Are you living paycheck to paycheck? If you lost your job tomorrow would you be okay? How long could you last without a paycheck? While many of us hope to never be put in this situation, it is important to realize that it could happen to anyone.
When I was first married, my husband was laid off for about six months, because the building he worked in burned down. He had just started the job, and so he did not qualify for unemployment. He did find another temporary job with a major cut in pay, but it took him over a month. Fortunately I was working at the time and we were fine without his paycheck.
Not only is it stressful to know that you rely heavily on your job to support your lifestyle, it is dangerous to not have a back up plan. The easiest way to prevent yourself from experiencing the negative effects of this is to begin to save an emergency fund that will cover several months of expenses. This will allow you to look for a new job without the added stress of staying in your home.
Living paycheck to paycheck is not something that only affects those who do not make much money. You can be making over $100,000.00 a year, and still be living paycheck to paycheck. It is not about your salary, but rather how you manage it. Many people who could be wealthy do not ever achieve wealth because they spend their money as fast as they earn it.
It can be difficult to save money when you are used to spending it. There is a rush that many people experience as they buy new clothes, cars, and other things. There is a satisfaction in working hard, and then enjoying the money that you have earned. It is important to remember to save as well though. By doing this you are protecting your future, and the other assets that you have accumulated.
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