How are you feeling about your money? Does it make you feel anxious, break out in a sweat or wake you up in the middle of the night? This is probably what most people living pay-check to pay-check feel about their money.
You're in the right place though if this is not for you. Living pay check to pay check means that each time you are paid from your job you are then spending all that you earn. While this may work for some and you know #YOLO, is spending all that you are earning really exciting?
While what each person spends their money on will be different, having a plan can create the change you want to see.
Why people live pay check to pay check
- There is no plan in place on what they are doing with their money
- You're not tracking where your money is going
- It is easier to do
- It is what you have always done
- To fit in with the crowd
The main disadvantage of having more month at the end of your money than more money at the end of your month is that you are essentially trapped to keep on working. While sure you may enjoy your job however what happens if you get sick or are no longer required in your role?
The benefits of living with a financial buffer in place
- You're less likely to worry about money and wake up in the middle of the night in a cold sweat
- It can give you more options on how you can spend you time
- If you're sick, injured or need to look after someone you can then talk the necessary time off
- You'll be able to pick the work you enjoy doing rather than working to do what you enjoy
Now that you have an idea of the benefits of not living pay check to pay check we'll delve further into this in future posts.
How do you manage to get a financial buffer in place?
What benefits have you found from not using all of your money?
Remember to live your money glee!