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How To Live On What You Make
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You may think that the only way to live is to get a better paying job in order to pay for all the bills you may have accumulated. The good news or the bad news depending on who you are is that more than the poor or the middles class that feel this way the upper class feel this way at times too. You have way to much month left at the end of your pay.

You decide that barring a second job overtime will take care of your money troubles. Overtime is a costly mistake at its best and a critical overload at the worse. Working overtime in huge amounts is disappointing as you do not make the amount of money you think you should. Why? Think taxes!

You become dependent on overtime to meet your needs then the real shock overtakes you when overtime is no longer available and you now have to live on your regular pay. You may think that there will always be overtime that's great but soon you will come to resent working lots of hours for an employer who's bottom line is what they make and not the sacrifice you make to work long hours.

You will also start to wonder what you are missing in life and what you could be doing to change your life in the extra hours you are working for someone else. So how do you learn to live on what you make. Its easier than you think although it may take you several tries to get it right.

Pay yourself first

This is a simple concept that I had heard for years and one I did not understand. In my ignorance I laughed it off or ignored it all together but its something that every person should do for themselves. In an organization if there is a money crunch and everyone's salary is not covered the owners will for go their salary so that the staff salary can still be met.

You may wonder why, the reason is without a staff the business would stop they are what powers the organization. Now lets look at your life. The life you live is powered by someone also but in this case it is you. You will negotiate your bills if money is tight and by now you may be a pro at it. Yet even when money is tight you have to pay the person powering the organization and in this case that is you. Pay yourself first.

How do you make that happen

Start small it will not happen over night. You may think there is no way to do that, you do not even have ten dollars left by the time the next pay rolls around. Many people are in the same boat but it can be done. The hardest part will be the first time. When you get paid immediately move a small amount to your savings. It may only be ten dollars but that's ok do it and then work on forgetting its there.

If you can keep from touching it you will be so proud of yourself that when you put the next ten in it will be easier to do. Now that you have started paying yourself slowly increase your amount each pay.

Now your saving maybe thirty or forty dollars a pay and your still living on what you make. You are starting to make wiser choices eating in more than eating out. You are getting what you need and have cut down on making decisions without thought.

Work your way up to ten percent a pay being put away

Now your well on your way your paying yourself more and juggling a little less but you still have some big bills to pay. You may already have a method of paying them or have thought of several methods. You can also choose to use this one. Figure out how much you can pay to your back bills on a monthly basis and then make arrangements to pay a certain amount every month.

Take one bill and make sure you arrange that one at a higher amount than the others. Make this your smallest bill. The higher payment arrangement will pay it off sooner and as you see it disappear you will feel empowered. Once it is gone take that money and add it to the payments on your next smallest bill until it is gone.

Once you do this until your back bills are paid in full you will now be debt free the money you used to pay your bills can now be used for investments. Investments bring profits eventually you will have the money you originally thought you needed and you will know how to live on whatever you are making.

If this seems simple and easy then that's good. Hard and complicated does not work for most of you and definitely never worked for me. Tweak this to fit your life as no two lives are ever the same. Please fill free to leave comments and maybe even words on how you have accomplished doing this

Street Talk

Anna Ware  

Yes, we should always pay ourself first. Good article.

  about 9 years ago

Good strategy - I especially like paying off the little bills first; in fact, have done that in the past and it does work. In no time at all it seems like more money is freed up to be applied to another small bill. Just have to be consistent. Good job!!!

  about 9 years ago
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