Living on a paycheck-to-paycheck budget can wear you down not only financially, but also emotionally. Though you might be able to cover your bills, it can be devastating to see how your income never manages to stretch as far as you need it to.

Thankfully, there are a few ways to change that. Take the steps mentioned below to break out of the paycheck-to-paycheck circle and finally start thriving financially.

5 Ways To Thrive On A Paycheck-To-Paycheck Budget

1. Pinpoint Your Financial Trouble Spots

Did you know that over 50% of individuals who earn more than $100,000 live paycheck to paycheck? A lot of people tend to link such a way of living to low income, but the truth is that even some millionaires find themselves waiting for their next paycheck.

That’s why you might want to start your money-saving journey by reviewing your spending habits.

Take a look at your bank statements from the last 3-6 months. If you’re not used to following a budget, this might become an eye-opening experience for you.

Now, find out how much you need to spend each month on housing, utilities, groceries, and gas (it can be 50%, 60%, or 70% of your overall income). In a nutshell, you shouldn’t be spending more than 30% on your ‘wants’. If that percentage is way bigger, you would have to reduce non-essentials and ensure that the saved money is going towards building an emergency fund.

2. Take On A Financial Challenge

One of the best ways to reduce your expenses is by trying a money-saving challenge. Here are a few ideas:

• A no-spend challenge – don't spend money on anything other than essentials for a few weeks or a whole month
• The bowl-grab challenge – write $1, $5, and $10 on pieces of paper and place them in a bowl. Grab a paper every day and set aside the specified amount
• The pantry challenge – instead of going grocery shopping, take a look in your pantry and try to come up with a meal using the products that you already have

3. Set Up An Emergency Fund

If you’re living on a paycheck-to-paycheck budget, you might assume that it’s impossible for you to start saving money. But in the absolute majority of cases, that’s not true.

The trick to setting up an emergency fund is treating it like a monthly expense. Don’t make saving an afterthought, include it as a line item in your budget (the exact sum can be as small as $20-$50 at the beginning).

4. Automate Your Bill Payments

Ensure that your essentials get automatically covered once you receive your paycheck so you don’t have to worry about paying your bills on time. Furthermore, such a feature will help avoid triggering late fees.

You can also automate deposits into your savings account. This is a great way of saving from a psychological perspective as you won’t even see the money that you’re setting aside, thus, you won’t feel like you are depriving yourself of something.

5. Ditch The Credit Cards

If you're living on a paycheck-to-paycheck budget, stop relying on credit cards to fill the gap between what you earn and what you spend. Remove any opportunities for temptation and remember that if you want to be able to thrive, you would have to get rid of this ‘temporary relief’ that, in reality, only results in a long-term battle.

What Is A Payday Advance?

Payday loans are short-term loans that can help you get some quick cash while you’re in-between paychecks. This cash can be used to take care of an unexpected emergency, like a car repair or a medical bill.

One of the main advantages of a payday advance is that you wouldn’t have to spend years repaying the loan. In fact, the required sum can be fully paid off with your next paycheck.

How To Get A Payday Advance

With Alabama Title Loans, Inc., you might get the much-needed cash in the shortest timeframe and you can get approved for up to $500.

You can start the application process by filling out the inquiry form online or driving directly to the nearest store location. In any case, you’re going to need your photo ID, your most recent pay stub, and a blank check from an active bank account in your name.

Once you arrive at the store, you might be able to get the cash in only around 30 minutes, if you get approved.

Apply For Your Payday Loan Now!

If you’re tired of living on a paycheck-to-paycheck budget, then you should definitely try out some of the tips mentioned above. However, building up a sufficient reserve fund might take up to a few years. If an emergency happens during that time, you might want to consider applying for a payday loan.

Alabama Title Loans, Inc. has made getting the help you need as easy as possible. All you would have to do to get started is fill out a short form.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.