I was honored to be interviewed by U.S. News & World Report about How to Stop Living the Paycheck-to-Paycheck Life.
Here’s a snippet:
For Laura Jones, it wasn’t a lack of savings that led to her living paycheck to paycheck. In fact, the 38-year-old Lawrenceburg, Indiana, resident had been diligently putting money away in her retirement account. However, when she lost a job, she realized her money was out of reach, and frugal living became a necessity.
“We tell people to put money into [retirement] accounts where you can’t touch them,” Jones says, “but [I’ve learned] you still need an emergency fund.” Jones eventually landed a job selling insurance and was able to put away enough in an accessible savings account for a year’s worth of expenses but not before going through a period of stretching one paycheck to the next.
People may end up living paycheck to paycheck for a number of reasons. They could be forced into the situation by events outside their control, or it could be the result of financial choices they made. Either way, it’s not an enjoyable way to live. Here’s how to get out of the paycheck-to-paycheck cycle and on a comfortable budget.
Leighann says
I feel frustrated with my situation because we are literally doing all of that stuff. My husband and I are even only eating once a day because we can’t afford even ramen (and we’re too stressed out to eat a lot of the time, anyway). We’re strategic shopping. We’re couponing. We’re stocking up. We do NOTHING outside the home, including taking the kids to the park because we’re trying to not waste extra gas. We are doing every single thing that has been suggested. We’re not even in control of our budget or bank account; a third party gives us a certain amount of cash each week for us to live on, and pays bills with the rest of my husband’s paycheck.
I can’t work because I am disabled, but I don’t qualify for disability (I’ve already applied). I’ve thought of every single way possible to earn more money, but between the physical ailments and the mental ones, there isn’t anything I can do (how many people want to trust their children to someone with a severe mental illness? It’s not something I can hide, either). So, unless my husband got a second job, there’s no way for us to get more money, and the person who is in charge of our budget/money made my husband quit the second job he was working so that he could help me out around the house.
On our tax return, we make way too much money for any sort of government aid. We don’t qualify for food stamps, TANIF, etc. because my husband makes more than the limit, but not enough for us to actually get us through each week. We have insurance through his job, which is really helpful because I require doctor appointments every other week with one doctor and once a month with another doctor, plus monthly medications (they’re only $5 each, but when you have to pay $5 per month for 5 medications, and that money comes out of your grocery budget each month, you wind up coming up short no matter what you do).
We can’t sell anything because we don’t have anything to sell. OK, I could sell the computer and the printer, but we kind of need the computer so that I can get hold of grocery deals (and the printer to print the coupons). I only own 3 pairs of pants and a handful of shirts. I don’t even own a bra. I haven’t gotten a present since 2008 (no anniversary, birthday, or mother’s day present). We don’t eat out. We don’t drink. We don’t smoke. We don’t do drugs. We don’t eat take out, or go to restaurants. We do not rent movies, even free redbox movies, because I’m afraid of forgetting to return them. We don’t buy books. We don’t buy music. Like I said, we’ve cut everything out, to the point where I feel like life pretty much sucks because we literally cannot afford to do anything or provide our children with enriching activities (and I’ve looked into free activities, but they just don’t exist, except the summer reading program, and we don’t do the library because of the gas use associated with getting there, and fear of forgetting to return a book or damaging a book and being charged for it).
It’s just frustrating. Thanks for letting me vent.
Anonomous says
I’m in a similar situation due to health except no husband or family to help. My health insurance premium has been more than my monthly income. I do the things mentioned. I continue to tithe. I cook from scratch except for freebies I get with coupons. I have been asking God for specific things (The Bible says we have not because we ask not.) & He’s been giving me many of things I’ve asked HIM for. I found a bag of fresh produce outside my front door yesterday. I’m freezing some of it, since it is more than I’ll eat before going bad. I got a free haircut last week (Ive been cutting my own for 2 years, but just wanted a better cut & asked Him for a free haircut). I walked by something I’d asked the Lord for & had coupons for in a store yesterday. They had clearanced it & I got it free with the coupons I had in my purse. 🙂 I know God is faithful. I encourage you to read the Bible (Mathew, Mark, Luke, John, Galatians 3:13, & Deuteronomy 28 address healing & finances). Read them over & over again out loud (look at it, speak it, & hear it all at the same time). I have been healed of things doing this & am working on more healing.
Anonomous says
I prayed for you!!
Robin says
Wow! This is so horrible.
M. says
If you have a severe mental illness then you CAN get social security/disability – don’t give up trying.
Sarah says
Oh Leighann, my heart breaks for you! I’m not sure why you have a third party handling your money, but it sounds like a necessary thing, and if they thought your husband couldn’t handle having a second job with your family dynamics, I’m guessing they are right. The only other thing that comes to my mind is moving, if housing is costing your family too much. I know in my situation, in an ideal world, we’d live in a house that required less maintenance, but moving hasn’t been feasible for us either. Will all that you’ve mentioned, I doubt that is something you haven’t already considered, but I thought I’d mention it. I will pray for your family.
Lea Stormhammer says
When my cousin applied for disability several years ago, her attorney told her that it takes an average of three applications before disability is granted! Please don’t give up. It made the difference between being almost destitute and being able to make it.
Also, please talk to you financial person about having more money for groceries and maybe some help in planning meals (depending on what you’re doing now) – my knowledge of mental illness is limited to depression and I know that diet can effect that in big ways so I’m a little worried about you eating only once per day.
We’ll be praying for you!
Lea
Jane says
Oh Leighanne I am praying for you,., I know it is most likely not PC to post about someone’s elses blog on another blog.. but please check this one out..
heprudenthomemaker.com
BRANDY ! is sooo great at making so much out of nothing . hope it works out better for you soon !!!!!!!
Diane says
In our area we have facebook groups with names like “Pay it forward” or “free/sale/trade” and people are always offering free stuff. Often I see posts from folks who are housebound searching for items, and people will often deliver to thier home, or arrange to meet at a common spot like walmart. It s worth checking out, often people are just clearing out closets full of adult and children clothes, toys, books etc.
Good luck, keep your chin up!
Jessica says
Your transparency is humbling.
I just want to say as another said, with all the hardships that you can’t change, focus on what you can change. Some Bible verses that come to mind are “set your mind on things above. Not on things on earth where moth and rust destroy, and where thieves break in and steal.” (I think that’s in Matthew 6.)
No matter what your trial, you have life- God has given you life and put others in your life to care for and be cared for. Thank you again for sharing openly as it humbles me to rethink how to treasure my life and the blessings that God has given me.
Amy says
That was a great article! I needed the reminder to decide where our money goes before pay day. And also that this is not forever.
Thanks for all you do!
[email protected] says
Great tips! The envelope system and having separate bank accounts for major things like cars, bills, and savings is the two biggest things that we did to stop living paycheck to paycheck. It made us realize it wasn’t that we didn’t have enough money, but we just weren’t spending it wisely.