Tips To Save Money If Living Paycheck To Paycheck
Living paycheck to paycheck can pose challenges when attempting to save money, as highlighted by an audience member named Natalie at CNBC’s Women & Wealth event. Natalie struggles with high childcare and housing costs, leaving little room for savings. According to a CNBC survey, 58% of Americans face a similar situation.
Personal finance expert Suze Orman emphasizes the need to change one’s lifestyle if saving proves difficult. Orman advises creating a financial to-do list that includes clearing credit card debt, establishing an emergency fund, and contributing to retirement accounts, particularly in preparation for potential economic downturns.
Orman advocates prioritizing oneself and making necessary financial adjustments, such as cutting back on discretionary spending and taking on additional work if required. She emphasizes the importance of consistently funding retirement accounts and recommends automating savings to cultivate the habit of setting aside money regularly.
Orman’s advice includes distinguishing needs and wants, suggesting that purchases should align with essential requirements rather than unnecessary desires. By focusing on saving rather than spending and cultivating healthier financial habits, individuals can alleviate the stress of living paycheck to paycheck. According to Orman, adopting these practices can lead to a shift in mindset, where the satisfaction derived from saving equals or surpasses that from spending, ultimately helping individuals break the cycle of financial insecurity.