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HMM 116: Redefining What It Is To Live Paycheck To Paycheck

HMM 116: Redefining What It Is To Live Paycheck To Paycheck

When hearing that someone is living paycheck to paycheck we consider it as not very favorable. What if I told you there is a way to live paycheck-to-paycheck and it would be a good thing?

Today, on our first episode of season 5, we are redefining what it is to live paycheck-to-paycheck.   

What you’ll learn about in today’s episode:

  • Current stats on Americans living paycheck-to-paycheck
  • The two ways you can be living paycheck-to-paycheck (one of them is really a good way to live)
  • 8 actions you can take to redefine living paycheck-to-paycheck in a productive way

Current Statistics on Paycheck-to-Paycheck

Virtually half or 49% of all Americans are still living paycheck-to-paycheck.

According to a new survey conducted for GOBankingRatesForty-one percent of men and 56 percent of women say that they are in that kind of precarious financial position. Meanwhile, a total of 61% (52% of men and 69% of women) report that they don’t have enough in an emergency fund to cover six months’ worth of expenses.”

So what does it mean when you’re living “paycheck-to-paycheck”? This is when you money coming in and it’s all used up in some sort of way. We deem this as a bad thing, but there are two ways this can happen and the latter isn’t so bad. Here are two ways we can live this lifestyle. 

  • Penny Pinching: The majority, if not all the income is being spent on living expenses, bills, and maybe some is diverted to retirement, but there’s not enough to do the fun things you want to be doing
  • Putting All The Money To Work: All the income is being spent towards living expenses, bills, etc, but a good portion is being diverted towards wealth-building and retirement, short-term savings, fun goals.

What scenario do you fall under?

8 Actions to Redefine Living Paycheck-to-Paycheck

  1. Figure out why you want to stop living paycheck to paycheck. Having a strong why, will help you move forward.
  2. Get clarity on the money going out. Are you living below your income, at your income or above your income?
  3. Make sure you have a budget that makes sense, and that isn’t too restrictive, but meets your needs.
  4. Give every dollar a job.
  5. Automate everything possible (savings, bills, etc.)
  6. Look for missing money. Are there areas where you’re overspending?
  7. Negotiate! Your interest rate on your credit cards, your bills, etc.
  8. Decide what you have to do for you: Minimize that spending or bring in more income OR BOTH?

Links and Resources:

Article with recent study on Americans living paycheck to paycheck.

I want to hear from you!  What was your favorite takeaway from this episode? Please come on over to our community and share with us there.

Abrazos + Much Love,


Today’s episode of the podcast is brought to you by Bari Tessler Linden and The Art of Money.  Check out her free e-course: A Pocket Map for Your Money Road Trip by CLICKING HERE

P.S. THANK YOU for listening!

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