Everyone has a dream about what they want to do. If someone asked you when you were young, would you be happy with your dream job for $20,000? Any normal person would emphatically say yes because everyone wants to grow up to do something that they love no matter what the pay. Time passes, things change, and your view of the world changes. Bills don’t get paid out of hopes and dreams alone. People have come to realize that just the mere thought of that minimalist pay would not be enough to make anyone feel comfortable about their future. Even more money doesn’t mean that everyone feels comfortable on current earnings that you get monthly.
With that said, I cannot see how people are comfortable living on a monthly paycheck without a backup plan. You rely on an income that comes periodically to pay your said responsibilities that come as often as the paychecks. At any point, that regular, monthly paycheck can end from any number of things.
It can be even worse and your health may take a decline and cause you to lose that regular paycheck. Any number of things can go wrong and then where does that leave you? The monthly paycheck is great because it provides some sense of security. However, is that a false sense of security? Everyone needs to realize that it is possible the perceived “secure” job may not always be there. It is like your parents always tell you, that they will not always be around and you need to start thinking for yourself. There are several ways to for you to start thinking and become more comfortable with your regular paycheck.
- Rework your budget
Go through your budget often and try to find things that are not necessary or can be cut back. This is the easiest way to save more money and make your spending less than your monthly income.
Everyone’s budget needs help. I have not met a person in the work force yet that doesn’t wish they had more money to help their family. I have two degrees and still have more worries than not about how we will be able to pay our monthly responsibilities and be able to save for our future. Every month, I try to rework our budget to get out an extra $100 just to put into our savings or towards our debt.
- Increase your income
You can do this several different ways. You can go the obvious route and obtain a second income. This will require more effort on your part and possibly more time away from your family and may not be the ideal solution for you, but still is a viable option.
Also, you can always try to get more money out of the time you are already at work. Talk to your boss about how you can make more money either through a pay raise or through a promotion. Try to find out what they are looking for to make that happen. This is a great starting point to begin to make a higher salary.
- Start an emergency fund
You need to prepare for the worst situation possible and the best way to do that is to plan for it now. Those plans should include saving for the worst-case scenario. Many financial gurus suggest that you have at least 8 months worth of emergency fund saved. This means that you have 8 months worth of bills in a liquid account such as a savings account.
That number seems daunting and completely unobtainable when your first start saving. I’ve found a small trick to make it seem less daunting.
Start with your first goal of only one month saved up. You would be surprised how much better your feel with just a little cushion to know that if you lost your job today that you could survive for at least four weeks while looking for another job.
Everyone must have the epiphany that the job you left on Friday may not be there on Monday. You must have a contingency plan and another one after that in place to prepare for the worst. I think that if more people would have had that and been a little more realistic on their financial situation then we might not have heard about all of those foreclosures in the home marketplace.