That is the amount of money in which half of Americans have to their name according to a Forbes report. The majority of those surveyed admitted to living paycheck-to-paycheck and often having to borrow in order to survive.
It truly makes you wonder about the idea of the “American Dream.”
Financial instability is simply something we should accept; it’s commonplace because of multiple occurrences of economic bubbles, politics, and trade.
Incidentally enough – it’s the perseverance which is the backbone of the American Dream.
There are options, resources, and methods to pull oneself from the brink of disaster (the paycheck-to-paycheck lifestyle). Perseverance and utility, aimed at the right methodology and practice, will place you into the bracket which is no longer in a constant struggle for survival.
And so here are five different methods of doing so…
Escaping the Payday Cycle
Payday loan services are represented in almost every town & city and although they do provide helpful services for those that need an advance to cover the basics they also happen to trap users into a vicious cycle of reliance.
It’s very easy to find many solely relying on payday loan locations once they’ve been using the services for an extended period due to the added interest/fees for said services.
Payday loan alternatives, like loans via Blue Trust Loans, can be the leverage needed to climb out of the financial rut and cycle of the former services. An installment loan through these types of businesses allows for flexible repayment plans; with it comes higher vetting to prevent those unqualified from taking on further financial burden (checks and balances).
Cutting Back on the Out-of-Reach Lifestyle
How often do you truthfully track your income and expenses?
Since we already know more than half of Americans are living paycheck-to-paycheck we may as well guestimate that half the people reading this don’t entirely manage their finances. Yes, there are instances when work is slow or there are unexpected, emergency expenses but many of these issues can be alleviated through tracking spending – knowing how much is coming home and where it’s going will allow you to appropriately adjust your lifestyle so you’re less frequently in situations where you’re riding the line and relying on the next paycheck to survive.
The core of all this is as simple as this: stop living beyond your lifestyle.
· Downside your living space
· Reuse items to extend their longevity
· Cut back on consuming media and feeling influenced by advertising/marketing
You can most likely live without half the items you’ve accumulated over the years – each of those items has contributed to the debt. Change your lifestyle and your finances will naturally reflect the simplicity and stability.
Repurposing and Leveraging the Existing Skills
Leveraging and repurposing skills are, perhaps, the most effective method to long-term success with developing financial stability because you create new opportunities for:
· Building strong business connections
· Developing new skills (for new or existing efforts)
· Potentially launching a profitable venture
The core to starting these business ventures, outside of bringing your skill to the marketplace, is to tap into your current resources and to create lasting relationships with interested parties. You could, for example, turn your accounting for a small business into something of your own by managing the books for other small businesses through freelancing. The opportunities are endless once you realize your skills are in demand – all you need is to get them out there.
A combination of tapping your existing connections, leveraging relationships on professional networks like LinkedIn, launching a personal portfolio, and a bit of marketing will get you into the service-based freelancing marketplace. Those that wish to sell products merely need to begin developing and using eCommerce or sourcing it through supplies (domestic or foreign such as China).
The paycheck-to-paycheck trap and game can be demoralizing to say the least.
It may take a great deal of time to get back to stability but it’s worth the sacrifice knowing you’re no longer on a constant edge of the void. The reduction of stress that comes from owning up to your finances and tapping internal/external resources will set you over the half that will continue to be in turmoil from finances. It’s up to you to climb out of the rut – it’s also on you to help those out, too.