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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."

Image via Canva

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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The true cost of avoiding talking about money with your significant other.

Not talking about money can seriously damage an otherwise healthy relationship.

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TD Ameritrade

Only a couple of years ago, the idea of sharing how much money you make with your colleagues or friends was one of those taboos that you just don’t mess with.

But recently, there’s been a huge conversation about getting those numbers out in the open.

When salaries are public, it helps everyone have more honest conversations about what they should be making. And it especially helps women and people of color, who tend to make less than their white male counterparts.

Yeah, you might want to talk if your partner carries their money around like this. Photo via 401(K) 2012/Flickr.

But when it comes to being that transparent with a romantic partner, it can seem even more tricky ... but why?

Despite the slowly turning tide in the professional world, there’s still a lot of stuff we keep to ourselves when it comes to money and our personal relationships.

For many couples, deciding how to split the check is the most involved money conversation they have regularly.

Not talking about money — or worse, lying about money — can seriously damage an otherwise healthy relationship.

Consider these facts:

About a quarter of American couples actively avoid talking about money. 31% of married people have lied to their spouse about money. And only 51% of couples talk about how they will manage their money before getting married.

That's huge!

How you feel when you talk with your partner about money. GIF via "Broad City."

Not talking about money — or worse, lying about money — can seriously damage an otherwise healthy relationship.

In fact, a 2013 study found that not being on the same page about money is the #1 predictor of divorce.

"It's not children, sex, in-laws or anything else. It's money — for both men and women," said Sonya Britt, who led the study.

This doesn't count as a conversation about money. GIF via "Parks and Recreation."

Britt and her colleagues studied 4,500 couples in different financial circumstances and found that money tension was a major factor in relationship dissatisfaction. Regardless of income level, amount of debt, or net worth, couples who didn't deal with their money issues were putting their marriages at risk.

On the other hand, research by TD Bank found that partners who talk about their finances openly and honestly tend to have happier relationships.

The bank polled 1,339 Americans who are in relationships and found that "among respondents who said they talk about money at least once per week, 42 percent described their relationship as 'extremely happy,' compared with 27 percent of those who talk about money less than once per month and 38 percent of all respondents."

The elephant in the room — whether it's consumer debt, incompatible spending habits, or a miscommunication about savings goals — is going to be there whether you acknowledge it or not.

That's why both financial and relationship experts say that talking about money is crucial for healthy partnerships.

Talk to your partner about your wishing-well budget. Photo via Paulo OrdovezaWikimedia Commons.

It's not a complete surprise that couples tend to put off conversations involving their finances.


You and your SO after a great money convo. GIF via tr1ppy-j/Tumblr.

Almost all of us have some hang-ups about money, whether that's shame about not making enough, fear of student debt catching up to us, or just your run-of-the-mill compulsive online shopping habit that you'd prefer to keep from your partner (other people have those, right?).

And that's OK!

The important part is that you and your partner work through those issues with openness, kindness, and patience.

(And maybe a bottle of wine. Totally optional, but I've found it helps with money convos with the significant other.)

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Money management: We’re all dealing with it, and we’re all a little confused.

Money management doesn’t have to be a nightmare. Here are three quick ways to turn your finances around.

Work isn’t just a part of our lives, it’s one of the biggest parts.

Some people may only be obligated from 9 to 5, but with smartphones and evolving work cultures, we’re connected 24/7. A lot of us are logging over 70 hours each workweek because our phones enable us to take our work with us.

Jennifer J. Deal, Ph.D., author of "Always On, Never Done?" reports that remaining connected to work for so many hours each week leaves employees "only about 3 hours on workdays for 'discretionary' activities such as being with their family, exercising, showering, and all of those chores at home that someone has to do."

Only three hours per workday. We’re essentially never "off."

Despite working nearly nonstop, when payday rolls around, a lot of us can be left feeling like we'll never make enough.

GIF from "Finding Nemo."

Rent and mortgages, car payments, groceries, gas, nights out, pet emergencies, extracurriculars for the kids, family obligations — all of this takes a toll on our bank accounts.

It can feel like money is flying out of our accounts faster than it’s coming in. We’re working all the time but feeling like we’re just making it. We know we need to get a grip on our finances but have no idea where to start.

Here are three simple steps toward total financial domination.

1. Saving should be a part of the plan.

We hear it all the time: Save, save, save. Save for retirement. Save for emergencies. Save for travel. Figuring out how to save seems like it’s the holy grail, but how do we make that happen — especially if we feel like our money is already stretched too thin? The easiest first step is to, well, start with baby steps. Drink coffee at work or home instead of from a coffee shop, carry snacks and a reusable water bottle with you rather than buying them, come up with a quirky and fun challenge like saving all the $5 bills you accumulate, start a piggy bank — whatever is fun and doable for you.

2. Then, it all comes down to planning.

Don’t be afraid to budget. Yes, budget. It’s not a dirty word; it’s the way to freedom! Or at the very least the way to some financial flexibility. Take a look at how you’re spending money and figure out which items are needs versus wants.

Pro tip: Laura Shin, a Forbes personal finance writer, suggests keeping necessary expenses to less than 50% of your take-home pay.

Image view Tax Credits/Flickr.

Now, this isn’t always possible. Necessities are what they are, and for some of us, no amount of finagling can get them to that ideal amount.

Alan Dunn, founder of HowtoSaveMoney.com points out that, for some, "the sheer cost of survival may be very close to their total incomes." Still, it’s a pretty good benchmark to aim for, and having insight into your finances is step one on the road to financial security.

Now that you’ve begun to sort out the things you can’t live without, what about the things you want?

3. Give yourself an allowance! No, really.

Once you’ve broken down your finances into needs versus wants, build an allowance into your budget. Doing that gives you clear parameters — how much you can spend in a given pay period on things that aren’t necessities — and makes it easier to stay on track without feeling like you’re never able to treat yourself.

Make it easy for yourself to stay "on track." Image via Ben Sutherland/Flickr.

It's as simple as setting aside a fixed portion of what remains in your account after bills are taken care of. You may not be able to get everything you want at once — sometimes it’ll take a few months to put aside enough for a big purchase — but with planning, you can indulge a little.

Let's say, after all of your bills and savings are taken into account, you're able to spend $100 per month on anything your heart desires. You're dying to go to a music festival, but the tickets cost $175. It's not the end of the world! You don't have to forgo the festival, and you don't have to break your budget for the month — that would be a slippery slope. Put the $100 aside and wait until the following month when you'll have $200 at your disposal to get the tickets you want, guilt-free.

Payday might still suck…

Money will still leave your bank account at an astonishing rate that makes you believe Hogwarts is real, but you’ll feel more in control once you know where that money’s going and how to make it work for you.

Don’t feel guilty if you hit a few bumps in the road! We’re all navigating these murky money-management waters together.

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8 student confessions that make me think differently about money — and merit.

Hard work does not equal financial security.

In March 2015, a group of Columbia University students created a Facebook page named Columbia University Class Confessions.

 

The group behind the Facebook page is known as First-Generation Low-Income Partnership, otherwise known as FLIP.

Their goal? To provide lower-income students at Columbia a space to voice their realities.

Their realities are pretty darn harrowing.

 

 

 

Before Columbia, Stanford had already launched a class confessions program a few years back:


After Columbia and Stanford launched their Facebook class confession pages in early 2015, other colleges followed suit.

Brown

 

Williams

 

There's a lot we can take away from these stories. They're intense; they're saddening. But here's one thing we should definitely note.

Hard work does not equal financial security. Social mobility isn't as easy as some might think.

 When the Fight for 15 protests happened across the nation in favor of raising the minimum wage, one of the most common counterarguments was: "Why don't they just go get a college degree?"

Well, look at these college students working hard — to feed themselves, to get a roof over their heads, to get the medical assistance they need for depression or other health conditions, to support their struggling families back home. They went to go get that college degree that is supposed to help people out of poverty. They even worked hard enough to apply and get accepted into incredibly prestigious colleges, colleges that one would think would be the golden ticket to success.

And still, they're struggling. "Hard work" doesn't always give lower-income folks what they need to survive and fit into a world that's not made for them.

 

And the sad reality is that many lower-income people will still be struggling after graduation thanks to a weak economy — and a lot of debt.

 From the Institute of College Access and Success: 69% of the Class of 2013 graduated college with an average of $28,400 in student debt.

Lower-income students clearly have more difficulty navigating things that others might take for granted — simply because they never had access to the resources some have always had — and don't know how to use them.

 

Check out more stories being read by students in this video below:

We all deserve the right to survive without struggle. These students show that hard work doesn't cancel out the obstacles that many lower-income folks face when trying to move up the socio-economic ladder.

Maybe their stories will help stop the unfair judgement of lower-income people and help others be more aware and understanding at the same time.

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