A STEP-BY-STEP ACTION PLAN

HOW TO STOP LIVING PAYCHECK TO PAYCHECK

LEARNING OBJECTIVES

• Recognize the importance of knowing your income, debt and savings.

• Increase awareness of frivolous spending and how to decrease/eliminate such spending.

• Find sources for money you can start saving now.

LEARNING OBJECTIVES

• Understand the necessity of paying off debt.

• Discover creative ways to earn extra money.

• Learn how to use part of your savings to erase debt.

• See how following a budget can benefit you.

FOLLOW THESE 8 STEPS TO STOP LIVING PAYCHECK TO PAYCHECK FOREVER

1. Acknowledge your current financial state.

2. Know your monthly income and debt totals.

3. Cut excess spending today.

4. Start saving money this week.

5. Begin paying off your debt.

6. Earn extra income however you can.

7. Use half of your savings to pay off debt.

8. Have a budget and stick to it.

STEP ONE: ACKNOWLEDGE YOUR CURRENT FINANCIAL STATE

You Can Have A Better Financial Life Even With Your Current Income

Change how you handle your dollars now to alter your financial existence.

Are You Living Paycheck To Paycheck?What would happen if, the next time you expected a paycheck, you didn’t get it?

What Is Your Total Debt?

How Much Money Do You Have Right Now?Total all your accounts. Savings, stocks, CDs, and cash.

STEP TWO: KNOW YOUR INCOME AMOUNT AND WHAT YOU’RE PAYING FOR EACH

MONTH

Subtract your total outgoing dollars from your incoming dollars.

If the result is a negative number, you’re spending more than you make!

Now—Subtract!

Now, list everything you pay in a month

— household bills, gas/car bills, haircuts, entertainment, meals out, and medical/dental.

Outgoing dollars

List all the money that comes into your household in a month.

Incoming dollars

“MANY PEOPLE ARE IN THE DARK WHEN IT COMES TO MONEY, AND I’M GOING TO TURN ON

THE LIGHTS.”

SUZE ORMAN

STEP THREE: CUT EXCESS SPENDING TODAY

Record all

expenses for 7 days.

Discover where your

frivolous spending is, then stop it.

Which expenses can you cut from monthly outgoing dollars?

Get rid of 1

monthly expense

and reduce

two others.

Keep in your

wallet the credit card with

lowest interest.

STEP FOUR: START SAVING MONEY THIS WEEK

• Each day, place your left-over change in the jar.

• If you didn’t get change that day, place a $1 bill in the jar.

Save change in a jar or piggy bank

• Make your deposit toward month’s end.

• No matter how much you have, put it in the bank every month.

Deposit the change monthly into your bank or credit

union

• Save the $5 from grocery money or what you spend eating out.

• You’re establishing the habit of paying yourself, no matter what.

• Place this $5 in the bank, along with your change every month.

Pick a weekday to pay yourself $5.

STEP FIVE: BEGIN PAYING OFF YOUR DEBT

A SECRET TO STOP L IV ING PAYCHECK TO PAYCHECK IS TO REDUCE YOUR DEBT SO YOU’LL HAVE CASH IF YOU NEED

IT

List your debts and decide which you’ll pay off first.

Use half of your savings account money along with the amount you normally pay toward the debt to apply toward the targeted debt.

This process will go quicker than you think!

Although this step will be tough, it’s an important aspect of liberating yourself.

GET DOWN TO BUSINESS AND PAY OFF YOUR DEBT.

“IT IS INCUMBENT UPON EACH OF US TO IMPROVE SPENDING AND SAVINGS PRACTICES TO ENSURE OUR OWN INDIVIDUAL

FINANCIAL SECURITY AND PRESERVE THE COLLECTIVE ECONOMIC WELL-BEING OF OUR GREAT SOCIETY.”

RON LEWIS

STEP SIX: EARN EXTRA INCOME HOWEVER YOU CAN

• Examine all your skills and abilities with an open mind.

• You’ll be pleasantly surprised to learn that people will pay you to do those services for them.

• Read on to follow strategies that will lead you to financial freedom.

HOW TO EARN EXTRA CASH

Advertise your skills in local newspapers.

Use talents/skills to help the elderly for

pay.

Connect with your network to seek work.

“EARLY TO BED AND EARLY TO RISE, MAKES A MAN HEALTHY, WEALTHY AND WISE.”

BENJAMIN FRANKLIN

STEP SEVEN: USE HALF AND SAVE THE OTHER HALF OF YOUR SAVINGSAPPLY HALF TOWARD THE DEBT YOU’RE PAYING OFF

HOW TO MANAGE SAVINGS:

• Apply half of your total savings toward the debt you’re paying off, in addition to the payment you’d normally make.

• Leave the other half of your savings in the bank to accrue. You’ll be putting this money aside as an emergency fund.

CONTINUE SAVING

• Save enough for your 6 month emergency fund first. • Next, put aside $500 for a mini-crisis so if

something unforeseen occurs, you’ll be ready.• Ensure you replace any money you use for

a mini-crisis by continuing to bank your change.• Later, you can start a New Car Fund or a

Vacation Fund if you like.

INCREASE THE AMOUNT YOU SAVE WHENEVER YOU CAN

When you get a raise:• Boost your savings amount weekly by at least

50% of the amount of the raise.

When you pay a bill off:• Continue to pay your savings account at least

half of the payment. • Pay your savings account the whole payment if

you have other debts to pay off so the money can be applied toward your remaining debt.

DRAW UP A BUDGET AND STICK TO IT

Find a budget you like

Use realistic figures when drawing up your budget

Review your budget and expenditures often

"THE ART OF LIVING EASILY AS TO MONEY IS TO PITCH YOUR SCALE OF LIVING ONE DEGREE

BELOW YOUR MEANS."

SIR HENRY TAYLOR

SUMMARYWILL YOU STOP L IV ING PAYCHECK TO PAYCHECK?

8 SIMPLE STEPS

Acknowledge your financial state

Know incoming and outgoing dollars

Cut excess spending

Start saving money now

8 SIMPLE STEPS

Focus on paying off debts one by one

Earn extra income however you can

Use half your savings to pay debt and save the other half

Design a budget and stick to it

“AS SURE AS THE SPRING WILL FOLLOW THE WINTER, PROSPERITY AND ECONOMIC GROWTH

WILL FOLLOW RECESSION.”

BO BENNETT

We hope you enjoyed your Special Report!

Curtis Roese is an experienced professional with extensive experience in personal finance and small business matters. Curtis writes and publishes articles, courses, guides and special reports on his personal finance blog.

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