Stop Living Paycheck to Paycheck

At the Bond & Botes Law Offices bankruptcy is our business. We are focused on helping people get relief from debt. Over the years we have filed 10s of thousands of bankruptcies. Filing bankruptcy for people is how we make our living, many of our clients come to us living paycheck to paycheck and hire us to help end the cycle of living under this great burden. We specialize in ending the cycle of debt, but, in our hearts, we never want you in that position.

The Real Danger – Life Happens

There’s no real security with your money today. One little “life happens” moment can bring it all crashing down. Your money comes in and it goes out, leaving no room for error or emergencies. Being in a position where one flat tire, emergency room visit, or A/C repair can put you in a position of missing a car, credit card, or insurance payment is not good. Often the answer to these “life events” is to take on even more debt, stressing your monthly cash flow needs even further.

Take the 60-Day Budget Challenge

Maybe you are spending your money efficiently, but then again, maybe not. Maybe you don’t even know where your paychecks go. You need to know. Challenge yourself to account for (WRITE DOWN) every time you spend anything on anything. Do not change anything you are doing except to write down the amount, to whom, for what, and how, either cash, debit, or credit. Spend $1.50 to put air in tires using change from the floor of your car; write it down.

Categorize Your Expenses

Example

• Absolutely Required for Life
  • Housing (Mortgage, Rent, HOA, Insurance, Taxes)
  • Food from the grocery (Food purchased at the grocery and brought into the home, including essentials like soap, bathroom tissue, and cleaning products)
  • Clothing (daily wear, shoes, etc)
  • Utilities (Gas, Electricity, Water)
• Required for Living
  • Transportation (Vehicle, Maintenance, Fuel, Insurance, Licensing Fees, etc.
  • Communication (Telephone, Data, Cable, etc)
• Living Life
  • Food bought outside the home (restaurants, food trucks, convenience stores, girl scout cookies, bake sale)
  • Subscription to media services (Netflix or Xbox)
  • Entertainment (Movies, Concerts, Drinks After Work)
  • Hobbies (Golf, Bowling, Model Trains)
  • Debt Payments (Credit Card, Personal Loans, Store Cards)
  • Personal Items (Gift and Charity)

After 60 Days – Grade Yourself

Review each expense in every category, Look at every item purchased, the amount spent, and how you bought it. Then grade each item with an A, B, or C

• A – absolutely necessary no ifs and or buts – (Rent, Gift for Mom’s Birthday, DL renewal)
• B – not necessary but needed to be spent – (Date Night W/Spouse, Visa Payment)
• C – not necessary and did not need – (5th pair of Sandals, Premium Cable TV Pack, $500 per month for wine)

Take special note of everything you bought on a credit card.

Now That You Know – You Can Make it Easy on Yourself

Keep in mind, that it is all about what works best for you. Items from all categories can be given any grade. Live your life. If you know where your money is going you will be more empowered to control where your money goes.

You Plugged the Leak – Start an Emergency Fund

Now that you know what to cut put $1000 in a savings account or envelope. Knowing you have this buffer between you and life will bring you so much peace. If you get into a jam, you can pay cash without worrying about which bills you’ll have to skip this month to cover things.

Stop living with debt.

Debt will crush you if you let it. Debt holds you back. After you have your $1000 “life happens” fund in place. Get working on paying off the debt you are carrying for things you no longer have. Look at the purchases you made on your credit cards, you need to decide if these items and experiences are worth leveraging your future earnings. And debt is getting sneakier and sneakier. These days, installment payment companies are on the rise. They tempt you at the checkout by saying you can pay for that French press in four easy payments. Do you really want to sink money into your fancy coffee maker for four months? (No.) Listen. Living with debt (of any kind) is one of the biggest things keeping you in the paycheck-to-paycheck cycle.

3 Months of Expenses

After you have gone through the 60-Day challenge, put aside $1000 dollars, and took control of your debt it is time to create a stress-free life fund. This will change your life, living paycheck to paycheck, means you live in a constant state of fear. Fear of losing your job. Fear of having an emergency expense. Fear of not being able to keep the lights on. Putting away in a savings account 3 months of expenses means that you are free to live your life without the fear of day-to-day financial pressures associated with living paycheck to paycheck.

For Help With Ending the Cycle

The experienced debt relief attorneys at the Bond & Botes Law Offices help people overwhelmed by debt. We provide absolutely free consultations so if you need to stop living paycheck to paycheck and your debt is making that impossible call our offices at 1-877-581-3396 or email us through our website.