If you follow the news, it may seem like it’s marked by doom and gloom lately — especially in the realm of finance. With banks shuttering, the Fed raising interest rates, and the will-we/won’t-we specter of a looming recession, it’s easy to feel uncertain about our collective financial future.

As the price of living continues to rise, you might feel like you’re struggling to get ahead. If you are, it’s okay — and no, you’re not alone. In fact, over half of all Americans are currently living paycheck to paycheck. Still, if you want to stop living paycheck to paycheck, you can make it happen with some careful planning and strategy. Here’s how.

Stop living paycheck to paycheck once and for all with these 9 tips 🤑

1. Create a budget

Trying to reach your financial goals without a budget is a bit like driving cross-country without a map — it’s hard to be sure you’re moving in the right direction. 

If you don’t have a budget yet, start by listing out your income and monthly expenses. The goal is understand just how much you’re bringing in on a month-to-month basis, identify your monthly bills and obligations, and gain some insight into areas where you can cut back. 

Whether you’re shelling out more than you realized for unused streaming services, dropping $100 a week on takeout, or spending a fortune on big energy bills, having a financial roadmap can help you find the places where you can make a difference.

It’s time to take control of your finances, stop living paycheck to paycheck, and start reaching your financial goals. To make it easier, Simplifi can use your actual bills and income to create an automatic budget that’s tailor-made just for you.

2. Eliminate high-interest debt

If you’ve racked up thousands in credit card debt, student loan debt, or car payments, it might feel like you just can’t get out from underneath it. Add in high interest rates and a struggling credit score and you might feel like the task is insurmountable.

It feels overwhelming, but there is a way out.

Using your budget, you can see how much you can afford to put toward debt repayment — the trick is to pay a little extra each month without spreading yourself too thin. 

In practice, this might look like sacrificing your morning Starbucks for a drip coffee at home or a Keurig cup at the office — you can take any extra money saved from non-essentials and put that cash toward knocking out debt.

The right debt-paydown plan puts you in control — that’s why Simplifi lets you pick your goals and build them into your personalized Spending Plan. 

3. Limit discretionary spending

Even if you aren’t carrying a lot of debt, cutting back on nonessential purchases is a great way to stop living paycheck to paycheck. 

Before swiping though your spending in your finance app (did we mention how helpful finance apps are?), think about a normal week of expenses. What does that look like for you? How many nonessential purchases are you making each week that you could either go without (like clothing or comfort purchases) or make more cheaply at home (food and drinks)?

We’re not saying you need to ditch your social life and go full-on miserly recluse, but life is about balance, right? 

Whatever you like to do, you’re going to have a hard time breaking out of the paycheck-to-paycheck cycle if you’re spending extra cash every week on takeout from the Thai place down the street — not to mention shopping online, collecting vintage guitar pedals, trying new video game subscriptions, or whatever your passions are!

4. Live more simply

More of a philosophy than a tip, living simply can pay serious dividends well beyond the bottom line of your bank account. Instead of retail therapy, try burning off that stress with some healthy exercise. Instead of indulging in fast food, try indulging in a long bath and a good night’s sleep. 

We’re not saying you need to give up your worldly possessions (we’re certainly not doing that!), but practicing gratitude for the things you do have and focusing on the happy intangibles of life can help you save money while greatly improving the quality of your life.

So what does this look like in practice? Approach shopping like a treasure hunt and search for hip clothes at the thrift store. Or skip the trendy restaurant and opt for a home-cooked meal with people you love. 

By minimizing your spending habits and saving more money, you can find your way to a future you of financial freedom.

5. Get a side hustle

Sometimes the easiest answer is to simply make more money. If you need to increase your monthly income between paydays, the gig economy can be your best friend. No matter your skill set, your location, or your schedule, it’s fairly easy to make extra money with a side hustle — you just have to be willing to work for it.

The tried-and-true part-time job is still a totally viable option, but working as a barista or server tends to come with a more rigid schedule. If you want to work on your own terms, consider driving as an Uber or Lyft driver (not a bad way to put extra money toward paying off a car loan), get some hours at your local theater as a stagehand, or work for Instacart grabbing items at your local grocery store.

Making extra money with a side hustle is a great way to inject cash directly into your checking account, and you can use that toward paying off loans to be debt free or padding your savings for unexpected expenses.

6. Commit to a savings account

If you don’t have any savings, you’ll want to get the ball rolling as soon as possible. Having an emergency fund — even a small one — is a great way to stop living paycheck to paycheck and protect your finances when unexpected expenses come up, like car repairs, medical bills, or a new roof.

Start by opening a savings account with your bank if you haven’t already — you can create one with the same bank that operates your checking account. Then, automatically route a certain amount of money into your savings account from every paycheck, even if it’s just $25 or $50.

Having some extra money saved up means you won’t have to turn to high-interest debt to handle a few bumps in the road — instead, you’ll have a financial cushion to fall back on.

7. Use windfalls of cash wisely

Sometimes in life, we’re presented with a happy injection of cash when we least expect it. Whether you picked the long shot at the Kentucky Derby with $2 on 3,000/1 odds, your Great-aunt Ethel left you a few hundred bucks, or you got a healthy refund from the IRS, your first objective shouldn’t be a dry-aged NY Strip with Béarnaise while dining in a mink coat.

Instead, exercise some money management skills and redirect that windfall of cash wisely. 

What part of your financial situation could use that extra cash? Is your savings account looking bare? Do you want to pay more than the minimum payment on your credit cards? Paying off debt can help lower your monthly payments so you can make ends meet more easily. That can do a lot for your personal finances in the long run.

If you find yourself in a good place with your current obligations, you can also take the windfall of cash and find a way to invest — 401(k)s, IRAs, mutual funds, and ETFs are all great avenues. Remember, it’s never too early to start saving for retirement!

8. Angle for a raise at work

Have you been crushing it at work lately? Depending on how long you’ve been employed, you might consider asking for a raise — a surefire way to make more money! 

There are a few things to keep in mind while asking for a raise, with the most important being timing. Did your company recently go through layoffs? Is it currently struggling with a slow season? Timing is everything — make sure you ask when you know things are lined up in your favor.

You might also want to try for a promotion if you’re ready to jump to the next level. Consider showing your boss how you’ve been successful (with concrete examples), schedule a time to chat, and show them you’re ready for the next step!

By making more money, you can start breaking the paycheck-to-paycheck cycle and have a few extra bucks to spend next month!

9. Believe in yourself

Lastly, and most importantly, you need to believe in yourself. It’s easy to feel frustrated and overwhelmed when you’re struggling financially, but remember, the present doesn’t define your future. Take that first step today to stop living paycheck to paycheck and ensure you have enough money and financial know-how to reach your goals.

Most importantly, stay motivated. Achieving your financial dreams won’t happen overnight — but you can get there if you stay the course. That’s why Simplifi helps you define your financial goals, stick to your plan, and celebrate your victories every step of the way.