Whether you slowly got to that point or your current income puts you in that position, if you find yourself having to wait for the next paycheck before you can do basic things like buy some groceries or pay a common bill — you’re not just in trouble, you’re waiting for disaster to find you.
If When the day comes that you’ll have an unexpected problem (car repair, major appliance needs to be changed) you might be pushed over the edge and lose everything you have.
Worse, if your next paycheck is your only way out — what happens if your boss dumps you tomorrow?
Now is the time to start fixing this problem.
Trent Hamm from The Simple Dollar outlines a 10 point strategy which anyone can use.
Among the most practical, down to earth ones that apply to common folks like you and I:
- Cap your non-essential spending each month
- Look for regular expenses you can trim away
- Don’t shop for entertainment’s sake
The money you save this way, even if they might be pennies, you set aside. Keep on going until you’re at least 2 weeks ahead.
Also see: Breaking the Credit Card Cycle
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