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People share 15 real ways they escaped living paycheck to paycheck

"Be willing to accept that you might not be entitled to the lifestyle you have."

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People reveal their financial strategies for no longer living paycheck to paycheck.

Living paycheck to paycheck is becoming the norm in the United States. According to the United States Interagency Council on Homelessness, more than half of Americans live paycheck to paycheck. It is a financial reality that has many looking for financial solutions and frugal living habits to get ahead.

On Reddit, member @_DontStayTheSame_ posed the question: "How in the hell do you escape living paycheck to paycheck?"

People who have figured out how to successfully avoid living paycheck to paycheck chimed in. These are 15 of the best financial tips and advice they offered.

 save money, saving money, paycheck to paycheck, frugal living, finances Money Invest GIF by Sara Dietschy  Giphy  

"Take everything I have done pre 35 and do the exact opposite. Only use your credit cards for things you will be able to pay off quickly. If you are buying a car and thinking "That is close but I can do it" for the payment, find a cheaper car. Do what you can to live below your means. If you are a smoker, quit." —User Unknown

"Living below your means is key." —@Orual309

"Better advice would be to find ways to improve your income but live below your means while you do so you can save up enough to improve your situation long term. Too many people raise their lifestyle with their income without ever taking the time to set themselves up for long term financial stability. That’s how you get people making six figures but somehow still living payday to payday. Obviously if you only make enough to survive until your next pay there’s nothing you can do financially to fix that, it has to be some other kind of change enabling you to make more money like going to school or just applying for better jobs." —@Sparcrypt

 for shizzle, for real, money saving tips, save money, money advice Colin Jost Snl GIF by Saturday Night Live  Giphy  

"I might get some hate for this but... Live with your parents or only rent a room. Yes rent is expensive as hell and it sucks but sometimes you gotta suck it up and just get roommates. Easier to live with roommates than paycheck to paycheck in my opinion." —User Unknown

"Be willing to go back on lifestyle to fix your financial picture. Be willing to accept that you might not be entitled to the lifestyle you have. People think overspending means fancy cars, vacations, and expensive properties, but it doesn’t. It can mean buying a boring commuter car and a house. The baby steps are the first thing:

  • $1000 emergency savings, and a budget. Look back through your transactions for months to see what you actually spend, don’t just guess at your categories.
  • all consumer debt paid off. You should never be carrying a credit card balance. That’s a financial emergency, so if you are, save only $1000 for an emergency fund and put all else toward that debt.
  • 3-6 months of expenses saved in a savings account or no-risk investment with immediate liquidity (this is $15,000 for me, for 3 months, for example.)
  • minimum retirement targets met, most importantly taking any employer matching
  • invest for other goals like property, children, etc., depending on your needs

Once you’re there, you can use whatever is left over after those savings strategies and your expenses as a discretionary fund. A lot of folks spend discretionary before they have the baby steps accomplished, and it keeps them in debt and living pay check to paycheck, or waiting for that next big cash infusion from something like refinancing their house. The key is discipline. It’s tough, it really is. Seeing the 5 figure deposits to my bank account and knowing that it’s already spoken for can be tough because it’s tempting to want to spend it on a nice car (I’m a car enthusiast) or some other hobby thing, but I know I can’t do that." —User Unknown

 car, financial advice, affordable car, car payment, cars dance dancing GIF by Real Canadian Superstore  Giphy  

"We are literally about to pay off two cars. Both payments total about $900 a month all together. I didn’t want two car payments at one time, but we both needed a more reliable car at the time. That’s not horrible for two car payments, but it’s going to free up $900 a month for us…. Which is amazing considering my wife is now stay-at-home with a baby. We have started cooking at home, avoid eating out at all costs, only drink home-brew coffee, use grocery points for cheaper gas. I’ve started taking my trash and recyclables to the dump myself, we have cut Live-TV and every streaming and subscription platform we don’t use at least once a day. We don’t, nor have we ever, lived paycheck to paycheck. It’s just nice to save money. The only thing we are splurging on now is a cleaning lady once every two weeks for $140." —@MockASonOfaShepherd

"For the TV and streaming, I do one service a month and my cell phone comes with Netflix as a perk. Each month I subscribe to one service for only one month, and watch everything I want on that service. When that ends I let it expire and don't renew. I switch to another one for the month and watch everything there. I get a new collection each month to binge and it doesn't cost me any extra unnecessary money." —User Unknown

"Also, learn to use Excel. Being able to visually see where your money goes, all at once, can make your spending make a lot more sense." —@valvilis

 excel, excel spreadsheet, spreadsheet, budget, budgeting Heart Love GIF by Microsoft Cloud  Giphy  

"Just buy more money, it's not rocket calculus." —@faceeatingleopard

"This. Also don’t order out much. 1 fast food meal everyday of the week (depending on where you go) could have you spending an extra $100 a week that could’ve been spent at the grocery store instead. Learning to cook is cheaper than fast food easily." —User Unknown

"Meet people, work hard, get lucky. Marry someone who is financially reliable and life is half as expensive. Switch jobs every 3 years because your raises probably won't keep up with the market. Be mindful of your finances. Avoid credit card debt if you can." —@cavemanfitz

"Look into a career whose skill sets will always be in high demand. I pursued my Airframe & Powerplant Certificate. Now I can save and invest. It even made my income-earning ability Covid-proof. Yes, I got laid off a week and a half after starting a new job at a major airline. But 6 weeks later (thanks to my A&P), I got an even better-paying job as a Maintenance Technician at a 3M plant. I bought my first house in 2020. In 2022, I reapplied at that major airline and got hired as a contractor. I took a temporary, and minor, pay cut. Then I got hired direct 6 months later. I’m making a very good living and I’m able to travel the world. For the folks that say 'not everyone can do that'… I started this journey in 2016, making $12/hr at McDonald’s, and renting a room. So I’ve walked in the same shoes as many of the folks that say it’s impossible. No, I don’t have any kids. But I did graduate A&P school with a guy in his early 40’s with 3 kids. From day 1 of enrolling in A&P school up to this very day… I had to keep a strict budget." —User Unknown

 budget, budgeting, smart money, money advice, finances finances gif Giphy  

"I made a budget and update it every 3 months to see what it costs to run our family. My goal is to 'pay myself' each paycheck, which is considered savings. The budget generates two numbers. One for expenses plus luxuries, i.e. eating out, alcohol, hobbies, gym etc the other is my expenses without the luxuries in case I ever had to leave my job etc. By putting aside an amount each pay I've aimed and achieved saving 6 months worth of expenses without luxuries. Since doing that, I've then started to make additional payments to my superannuation account/ retirement fund that I can't touch until I retire. Since making the budget it's been an eye opener on where our money goes and how much we can save by cutting out stuff that isn't really worth it. It has also allowed my not so financially minded wife understand our position and gets her buy-in when we set targets for emergency savings or goals for buying stuff for the house or amounts for holidays. It's not full proof and we still have times where most of the pay goes out to expenses that can't be avoided like bills and rates that might all come in at once but its definitely made us feel more in control and enthusiastic about saving." —@CallSignVip3r

"You can't "save" your way out of poverty. Budgeting won't solve the problem. Those are just platitudes told to placate the masses. They empirically do not work, but the freak exceptions make good 'feel good' stories. Networking or advancement are the only ways out. Networking works best, advancement takes too long, and is far more probability-reliant. Beg everyone you've ever known for job opportunities. Be shameless." —@EmbarrassedVolume

"Rich parents, good health." —@Legitimate_Field_157

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People say these 20 outdated financial myths could be hurting you in today's economy

"'That commodity prices, like gas and eggs, are controlled by the president.' False."

Photo credit: Canva

Credit is still wildly misunderstood.

The economy has changed a lot since we all took our high school Economics class. And it is certainly miles away from what our parents grew up with. And yet, many still hold on to certain money beliefs that come from these bygone eras. Or frankly, ones that never had a right to exist in the first place.

And honestly, there’s so much conflicting information out there (about all things, really, but we’ll stick to finances for the sake of the conversation) that it’s no wonder that so many people might just stick with what they know, even if certain money truisms aren’t all that true, and even they aren’t actually helping.

Recently, someone flat out asked, “What’s the biggest financial myth people still believe that’s actually hurting them in today’s economy?" Below are some of the most illuminating answers.

Right off the bat, we have some politically fueled myths to debunk:

1. "'That commodity prices, like gas and eggs, are controlled by the president.' False. They're actually priced on a trade market, bought and sold, with production controlled by large corporations."

2. "That immigrants are taking our jobs! Like seriously. If every immigrant, legal or otherwise, disappeared tomorrow, it wouldn't do a single positive thing for me personally, much less the broader economy."

"People are so ignorant about this. The trades would be hurting horribly if this happened,” one person replied.

Next up were long running myths that were also deeply entwined with our collective relationship to hustle culture.

Photo credit: Canva

3. "That hard work will lead to wealth. This simply is not correct for the vast majority of workers (read: anyone not C-level). The truth is that the US is a shareholder economy, not a labor economy. This means that even if someone is getting regular raises, they're likely barely keeping ahead of inflation."

4. "That your employer will be there for you when times are bad. Build and keep a savings. You are a liability to them, not an asset, and will ditch you the moment they can profit from it."

"^This. Always remember this,” someone replied. “You are a cog in the machine and if they can find a cheaper cog, they will. Oh, and HR is not your friend.”

Then there were the strategies many people implement in hopes to save money, which actually end up costing them in the long run, whether that’s with groceries or with housing.

Photo credit: Canva

5. "Dollar stores are generally a worse food value based on size/quantity. Sure, it's $1, but the $2.25 box at the grocery store has 500% more food by weight, therefore, is a much better value. You're paying a little less to get a lot less."

"If anyone didn't know, US grocery stores almost always put a price per unit on the price sticker (i.e., $1.23/lb or $0.0865/oz). You should be looking at these when comparing prices for exactly this reason," one person wrote.

6. "That cheapening out on your laundry doesn't impact your clothes' lifetime. You can vastly improve the life and sustained quality of your clothes by not throwing everything in the wash together. Also, most better quality laundry detergents need less to clean better, so spending a little more on a decent brand will give you better returns. I have also found they wash out better, too."

7. "'Paying rent is like throwing your money away.' The truth is renting is a better financial move than buying in a lot of markets where home prices are too high."

And yet, certain things that could definitely add value…people are afraid of, it seems.

Photo credit: Canva

8. "Not investing back into yourself. Investing doesn't always have to be some major cash return. It could be education, making your life easier so you have more time and energy, or simply relaxing. I know a lot of people who played the frugal game and are just now getting out in their 70s."

To this, someone replied, "I tell people that one of the best investments you can make early on in life is a top-tier mattress and office chair. The amount of money you'll save yourself on future medical bills is one of the best returns on investment you'll make in your life."

9. "'The stock market is just like gambling.' You are never going to accumulate enough money to retire without using the stock market. The market has always gone up in the long term. If it stops going up in the long term, society will be in pretty bad shape, and your money probably wouldn’t be worth anything anyway."

"'Time in the market beats timing the market.' The stock market can be gambling if you're into day trading and trying to achieve short-term gains. But if you're investing long term, then yes, it's a great tool for growing your wealth."

By and large, people seemed to think taxes were an elusive subject to most folks. And probably rightfully so. Along with credit cards, do any of us really ever get a basic education on this unless we actively seek it out?

Photo credit: Canva

10. "Turning down raises because 'it means a giant jump in my taxes.'"

"11. Understanding tax brackets (in the US) in general. Can't tell you how many times I heard mention that their raise/overtime/bonus will just be eaten up by taxes.Fine, I'll take your raise and pay the taxes. No one ever went broke paying taxes."

12. "People do not realize that a tax refund is their money to begin with and that they should have their deductions set up to break even or owe a little. A lot of people still think it's some kind of stimulus."

13. "That tax breaks for the wealthy will allow some of their wealth to 'trickle down' to us poors. Something is trickling down on us, but it's not money."

Speaking of credit cards, that was also a popular topic in the responses.

Photo credit: Canva

14. "Keeping a balance on your credit card DOES NOT improve your credit score. What it does do is get you comfortable having a balance on your credit card, which, when it likely gets out of control, is like napalm pouring down on your future financial hopes and dreams."

15. "Credit cards are great, but under no circumstance should you ever pay a penny of interest on your credit card. You absolutely need to pay off your entire credit card balance at the end of each month. Credit card debt is the last thing you want to have due to the ridiculous interest rates they charge."

16. "Credit cards are bad. If you use them right, you can actually come out ahead. Get a card with good cash-back rewards and use it for everything. I mean everything. If you can pay your rent, bills, and insurance with it, do it. If you can use it for work and they reimburse you, do it. Pay the balance off at the end of every month, and make sure you keep track of your ins and outs. It requires you to be responsible, but it's worth it."

There was also a lot of talk about how our mainstream views on success in general (what it looks like, how to actually achieve it, etc) are inherited myths.

Photo credit: Canva

17. "That you have the smallest of chances of becoming a billionaire. People don't understand the orders of magnitude difference between even a low-level multi-millionaire and a billionaire. At 100 million dollars, you're still 10 times closer to homelessness than you are to becoming a billionaire. Stop trying to get there. Stop voting for people and policies that promise you that opportunity. The only way these people achieve that wealth is through siphoning it away from everyone else."

"My wildly successful uncle came from true poverty and he's worth about $50 million. If you look at what it takes to get even there, it looks BARELY possible at best. He worked his ass off from his early teens, he's incredibly smart, he's incredibly good with money, AND he was lucky, and he's still only 5% of the way to a billion after a lifetime of work,"one person replied.

"18. That you need to spend big to look successful."

19. "That you deserve something you can’t afford because you work hard. Deserves has nothing to do with it."

Lastly, we have the myth of the savings account. More specifically, the myth of how helpful it really is.

20. "Just save money.' No. You need to do more. Most savings are not beating inflation. As a result your money is shrinking by doing that. One of the most insidious ways our money is effectively being stolen is just by having inflation make it worthless by the time you'll go to use it.The easiest thing I am aware of is to put it in an index fund that automatically reinvests. These are automatic funds that follow a set algorithm of stocks (an index) and do not have a human element in the decision making. They regularly outperform professionals. They typically do very well compared to inflation, and require zero maintenance."

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Kellogg's CEO called out for suggesting people hit by rising food prices should eat cereal for dinner

This is not the financial advice people were looking for.

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Kellogg's CEO tells people to eat cereal to save money

It doesn't matter if you're a single adult or married with children, there's nothing quite like having cereal for dinner or a late night snack once in a while.

Something about it feels nostalgic but it's also really easy to fall back on when you're too exhausted to cook a full meal. There's nothing wrong with grabbing a bowl of cereal for a meal outside of breakfast. You're feeding yourself or your family a food that contains some of the vitamins a body needs.

Maybe that's the thought process Kellogg's CEO Gary Pilnick was going with when he unintentionally sparked some serious backlash. Pilnick was interviewed by CNBC's "Squawk on the Street" discussing the cereal giant's new commercial featuring Tony the Tiger. The commercial itself isn't really the problem. It features a mom holding a box of cereal with kids excitedly awaiting their cereal for dinner chanting along with Tony the Tiger's call to eat the sweet meal.

The backlash came followeing Pilnick's comments about why his company felt the need to create a commercial advocating families eating cereal for diner.

Americans have been feeling excess pressure at the grocery store as prices continue to climb as companies rake in record profits, while wages stay the same. This may make for some resentment with consumers, especially when the CEO of a large company like Kellogg's promotes their own product as a solution for saving money.

“The cereal category has always been quite affordable, and it tends to be a great destination when consumers are under pressure,” Pilnick tells CNBC. "We gotta meet the consumer where they are so we're advertising about cereal for dinner. If you think about the cost of cereal for a family versus what they might otherwise do, that's going to be much more affordable."

It's true, grabbing a family size box of Frosted Flakes and a gallon of milk is much more affordable than cooking a pot roast with all the fixings. The problem is, people probably don't want to hear money saving tips from a CEO that makes millions a year who is pushing a solution that essentially increase his company's earnings. "Squawk on the Street" host, Carl Quintanilla seemed to try to hint to Pilnick that his strategy may upset some people by asking if he was worried his approach may, "land the wrong way."

While the CEO said the approach was "landing really well right now," people on the internet are having some big feelings. A TikTok user who goes by the name PinkWigCorporategirly, uploaded the clip featuring the CEO's comments along with a caption that read, "Rich CEO of Kellogg's telling the poor and all of the laid off workers to eat cereal for dinner while standing in front of a mansion. This is what companies think of you."

The TikTokker was not alone in her feelings. Several commenters chimed in with their own thoughts.

"Give the peasants cereal for dinner," one person writes.

"Even cereal is $5+/box and the bags hold LESS cereal now, like 45% of the bag, so Kellogg's can kick rocks," someone else says, while others were worried about the sparse nutritional value in cereal.

"You don't need vegetables. Especially not kids. Who needs to be healthy," another sarcastically asks.

PinkWigCorporategirly wasn't the only one to make a video about the CEO's remarks. The general consensus seems to be that Pilnick should not give out financial advice that will enhance his own company's profits.

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Credit union chief has 6 easy tips for families to break the 'paycheck-to-paycheck' cycle

Even affluent people are living paycheck to paycheck.

via Alexander Grey/Unsplash

Getting out of the paycheck-to-paycheck cycle.

Rising costs in housing, groceries and financial services have Americans feeling the pinch. A recent study published by CNBC found that 62% of adults said they are living paycheck-to-paycheck, meaning their income covers their expenses without anything left over.

This financial stress isn’t just affecting lower-income people. Even those in higher income brackets are feeling the pinch, with over half of Americans earning over $100,000 having little to no money left after expenses.

When people are caught in the paycheck-to-paycheck cycle, they feel like they can never escape and get ahead. So Forum Credit Union Chief Operating Officer Andy Mattingly stopped by WTTV to share his 6 big tips to help people break out of the cycle and start saving.

1. Make an honest budget

The first thing you need to do is write out an honest monthly budget. Keeping track of every dollar you spend can be a real eye-opener and inspire positive changes in your spending habits.

Tips to break the paycheck-to-paycheck cycle

2. Stretch your dollars

This might mean looking for discounts and coupons and comparing prices, even on smaller purchases.

“We comparison shop, big purchases, cars and things like that,” Mattingly noted. “But we don’t think about everyday things that we buy, like going to the grocery store, things like that that you should look and make sure you’re buying them from the best place.”

3. Separate needs from wants

You may have to eliminate some luxuries from your monthly budget to break out of the paycheck-to-paycheck cycle. Subscription services are an easy way to deplete your bank account every month. Studies show the average American spends around $219 a month on various subscriptions.

“How many streaming services do you have,” Mattingly asked. “What type of Internet service do you have? What kind of phone plans do you have?”

4. Make a meal plan every week

Making a weekly meal plan can help streamline your grocery list to include just what you need. This way, you're not only avoiding the trap of buying too much but also saving money by not wasting unused food. It's a simple step that can make a big difference.

“The studies are if you do this you can save yourself about $75 a week on what you were throwing out that you don’t realize you are,” Mattingly said.

5. Look at loans

The next thing to look into is your overall loan situation and that means not just focusing on credit cards. Can you consolidate or refinance any loans to bring down your monthly payments? It's a great way to potentially ease your financial load.

“What we’re really talking about here is how can we put more cash in our monthly budget to get out of that paycheck-to-paycheck so we can start saving for some of these things,” Mattingly said.

6. Look at insurance coverage

It might be time to shop around for better insurance deals.

“If you’ve not shopped your auto insurance, your renters’ insurance, or your homeowners’ insurance, you’ve probably just seen it go up and you just think that’s what happens,” Mattingly said. “But you need to shop it every year.”

The overall idea of Mattingly’s advice is to take a holistic approach to your finances, whether that means changing your spending habits or looking at the deals you made a while back to ensure they’re still in your best interests. It may take a little time and effort getting to get things on track, bit it’s well worth it to break out of a cycle of financial stress.

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