Don’t live paycheck-to-paycheck anymore by avoiding these 5 money traps
Does it seem like the odds are against you when it comes to saving money? Maybe the money you have coming in every month seems to go out just as quickly.
If that sounds familiar, you need to educate yourself on some of the main ways that people get caught living paycheck-to-paycheck.
These are the top 5 money traps that you can eliminate to get out of the cycle!
Your Lifestyle Is Out Of Control
Living paycheck-to-paycheck isn’t just a poor person problem— it affects people making over $100K a year as well.
This is usually due to a common behavior: when our income scales up, we scale our spending up to match. That means we never really end up with more money in the bank.
Ask yourself if a purchase is a need or a want, and try to avoid spending as much on the wants.
Stop Being So Optimistic
Optimism is a nice trait, but it has no place when it comes to saving money.
You might think your income will be higher next year when you get that promotion, or that end-of-year bonus will be even better this year. You might figure that since money is easily replenished— you can spend a little more today and save a little more tomorrow.
It’s better to be a pessimist in this case. Only expect “sure-thing” money to come in i.e. your weekly paycheck and don’t count on anything above and beyond.
Don’t Test Your Self-Control
Human beings constantly overestimate their self-control and what happens? People end up putting themselves in dangerous situations with temptations they can’t withstand.
Instead of thinking you’ll be able to order water when you go out with your friends for drinks, maybe just stay in for the night and play it safe every now and then.
Buying Other People’s Admiration Doesn’t Work
People tend to make purchases for emotional reasons like wanting recognition or respect from others.
The truth is, few people will care about the vehicle you drive or the designer bag you have. The ones that do might not be worth spending as much time with.
Don’t let peer pressure and a drive for recognition motivate you to make purchases you can’t afford.
Cut “I Deserve It” Out Of Your Vocabulary
How many times has someone told you to get something because “you deserve it”?
This is dangerous thinking because it links rewards and contentment in life to buying things, which is not a healthy mentality to have.
Try rewarding yourself with things that don’t cost money like a relaxing walk, time with friends, etc.