Solutions to Breaking the Cycle of Dependence on Paychecks

Seven out of every ten Americans, a new study finds, have to make ends meet with each paycheck they get. You are not alone if this sounds like you. Nonetheless, it’s quite improbable that you’d choose to remain there.

Consider the possibility.

Wondering how to avoid living paycheck to paycheck?  Uncertainty is a major roadblock that must be traversed before any change can be implemented in our lives. If one’s first response to the idea of ending their reliance on a steady stream of income is “That is impossible because of x,” then they will never reach their objective of being financially independent.

Moreover, the value of x is irrelevant. If you believe that you will never be able to go ahead financially because of the way things have unfolded in your life, you are certain to be right. Your circumstances may be more difficult than average, but remember that no problem is insurmountable. Have faith that the change you want is possible and that you can bring it about.

Don’t hold out hope for further funding.

Like how thinking “this is impossible” can stop you in your tracks. Similarly, it’s accurate to say, “I need more money to get ahead.” Some people may need to raise their income before they can afford to climb up the economic ladder. Sadly, this is true. We will never know for sure whether this is true, however, if we let ourselves be duped into thinking that we can do nothing without it.

Let me try to provide evidence for this:

Seven out of 10 Americans depend on the next salary to make ends meet. However, why do so many individuals lack a safety nett when it comes to their finances? Is it because most of us (70%) are struggling to make ends meet? Or maybe it’s because so many of us are spending money on things we don’t need and on activities that aren’t essential to our survival.

This is a major distinction that has to be made. Because either an unfair economic system is constraining us and must be destroyed in its entirety, or we must each assume a bigger share of responsibility for our wasteful spending habits. Whatever the case may be, we need to take action. It seems the latter is the norm rather than the exception.

Digging further into the numbers, you find something of great importance:

Sixty-two percent of our clients earning between $50,000 and $100,000 a year are unable to avoid living paycheck to paycheck. Between 54 and 58 percent of consumers with yearly incomes of $100,000 to $150,000 are unable to avoid living pay check to pay check. To put that in perspective, the median income in the United States is $67,000 a year for a family of four. More over half of American households are poor or near-poor, while having incomes that are twice the national median. Certain mitigating circumstances do exist; however, they do not apply to the 54% of Americans who are in the highest income level. In reality, however, the more money someone has, the more money they tend to spend. Stop waiting for your salary to significantly grow before you take control of your financial situation and stop living paycheck to paycheck.