Living paycheck to paycheck is when you are able to cover all your monthly/ongoing expenses, but nothing more. Here are steps to move toward having more than just enough.
Compare and review your income and expenses Find any "extra" money you might have Emergency savings is your first priority. Without a safety net, you could find yourself having to rely on credit to cover unexpected situations. Can you cut or reduce internet, phone plans, dining out, gym memberships, or coffee shop trips? Tax refunds, work bonuses, or a side gig can add to your money to your fund. Small changes can add a buffer to your budget.
Create an emergency savings account When you find spending reductions, put the money directly into a separate account. A monthly goal of $50-$100/month is good, but $25 can add up and help with unexpected needs. Add or increase whenever possible.
Set up automatic deposit from each paycheck Set it and forget it! Only access the emergency savings or other specific savings account for the purpose it was intended. If you stay consistent, over time you'll develop the habits needed to see improvement. Ideally, you should have three to six months' worth of your monthly expenses set aside in savings in case of emergency or income loss. Want to know more or have a weekly financial wellness tip sent to you? Sign up below or, contact your local
Mid Minnesota Federal Credit Union Office.
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