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Creating a budget and sticking to it. Although it sounds like a burden, it actually freed me from a lot of stress. I broke out of the paycheck-to-paycheck cycl
by atarian 10y ago
Creating a budget and sticking to it.
Although it sounds like a burden, it actually freed me from a lot of stress. I broke out of the paycheck-to-paycheck cycle, allowing me to invest and even set up emergency funds that helped pay off an auto accident I got into.
Most importantly though, I've gained a lot of self-confidence. If I got fired or laid off today, the last thing I'd have to worry about is paying my bills because I'm prepared to handle this scenario. So I've started making more bold decisions at work like saying "no" to overtime or responsibilities I don't want to take on, which has further improved my quality of life.
I can't recommend budgeting enough.
- afarrell 10y agoI've tried to do this for years but never been able to figure out how it works in practice. My wife and I have settled on just looking at our accounts every week and seeing that we have enough buffer, but I really feel like there is some skill that is missing.
- nikkisnow 10y agoIt wasn't until I really grokked YNAB's methodology[1] that I got out of the paycheck-to-paycheck cycle, saved up for an emergency fund, and begun seriously paying off school loans. Their 4 rules and their app have changed my financial life. Like atarian said, having a budget really does free you. [1]: https://www.youneedabudget.com/method/ https://www.youneedabudget.com/method/
- afarrell 10y agoI don't know if I have ever really lived paycheque to paycheque though. I've pretty much always been in the situation where I was able to cover a surprise $500 expense. My level of spare cash has fluctuated pretty wildly from $500 to $3,000 though and my long-term savings should be higher.