285 | Financial Freedom: How to Stop Living Paycheck to Paycheck

Financial Coaching for Women: How To Budget, Manage Money, Pay Off Debt, Save Money, Paycheck Plans

Episode Summary: In this episode, we tackle the all-too-common issue of living paycheck to paycheck. They delve into the mindset and behaviors that keep many of us trapped in this cycle and share practical tips to break free. Whether you're making good money or just starting out, they offer strategies to help you manage your finances better, set big goals, and ultimately achieve financial clarity and freedom.

Key Points:

1. Understanding Paycheck to Paycheck Living:

   • Definition and common scenarios.
   • The stress and limitations it brings.

2. Common Mistakes That Keep You Stuck:

   • Relying on a single bank account for all transactions.
   • Focusing on paychecks rather than monthly budgeting.
   • Lifestyle inflation without intentional planning.
   • Relying on credit cards as a budgeting tool.

3. Recognizing the Signs:

   • Waiting to pay bills until payday.
   • Splitting bills due to lack of funds.
   • Constantly checking the bank account balance.
   • Spending every dollar before the next paycheck.

4. Steps to Break the Cycle:

   • Conduct a 90-day review of your finances.
   • Set inspiring, big-picture goals.
   • Create a budget that includes income, debt, bills, spending, and savings.
   • Separate accounts for bills and spending.
   • Develop a consistent paycheck plan.

5. The Importance of Intentional Spending:

   • Avoiding unregulated lifestyle inflation.
   • Setting up savings buckets for intentional spending.
   • Learning to enjoy financial stability over the allure of credit card points.