Using A Title Loan To Help Your Budget Living Paycheck To Paycheck
"Living paycheck-to-paycheck" is an expression used to describe somebody who wouldn't be able to meet their financial necessities if unemployed. In other words, their salaries are primarily devoted to expenses. Likewise, they tend to have limited or no savings, so are at greater financial risk should things go wrong.
If you are living paycheck to paycheck, understanding the full breadth of the term and learning how to get out of this somewhat threatening circumstance is important. So, we're going over everything you need to know right here: from the definition of the term to budgeting to finding a title loan with help from TitleAndPaydayLoans.com.
The Truth Behind Living Paycheck To Paycheck
You may have heard "paycheck to paycheck" and "working poor" used interchangeably, but this is just a common mistake. The two terms have different meanings.
The "working poor" are generally described as having limited skills and low pay. Yet, individuals living paycheck to paycheck can have degrees in various fields. It's mitigating factors (e.g., limited success in regular employment and industry downturns) that suppress the impact of their skills, contributing to their financial situation.
As a person living paycheck to paycheck, you're more likely to work a few jobs to make more money to meet your day-to-day living expenses. Contrary to popular belief, though, you can still have a high-paying job and be in a similar situation. If your expenses are equal to or exceed your incoming salary, it doesn't matter how much you earn, you're still living paycheck-to-paycheck.
The Trend Is Only Rising
Various aspects of the modern age are seeing an increasing number of full-time workers across the US living paycheck to paycheck. While not a cheery thing to think about, it's not surprising considering salaries haven't increased enough to keep up with the ever-rising cost of living. In fact, "real" wages have stagnated for the last four decades.
Not to mention that personal debt levels are rising, thanks to student loans, credit cards, and childcare costs, even for those earning over $100,000 per year. Thus, more Americans are partaking in side hustles and part-time work to boost their income.
Making A Budget: The Key To Stop Living Paycheck-To-Paycheck
The good news: you don't need to be part of a statistic. Even when you feel like there's no way out of your current financial state, there is — and it's budgeting.
Creating a budget is one of the best decisions you can make when living paycheck to paycheck. Only a select few actually enjoy this process, but it's a must-do to get out of less-than-pleasant monetary ordeals. After all, knowing where your money is going is vital when you often find an empty bank account at the end of the month.
To make (and stick) to a budget, follow the five easy steps below:
1. Track Spending
Your budget starts with knowing where your money goes — every last cent of it. It'll open your eyes to your highest spend categories; you may even be surprised by the results.
Ideally, you should track your spending for a whole month to give you a full outlook of how you generally spend your cash. Use a note app on your phone or paper planner if you use cash.
Alternatively, use an online service to track your spending. These days, you can find loads of options on all app stores.
Ultimately, use what you're comfortable with to make it work for you.
2. Create A List Of Expenses
Compile all your expenses in a list, categorizing them under these headings: Fixed Costs and Flexible/Variable Costs. The former should hold your mortgage/rent, car payment, etc., and the latter should contain your gas, grocery, and utility bills.
Write down what you'd like to spend on variable expenses and add up your actual costs. Then, calculate how much money you earn every month. Now, subtract your total expenses from your income to see if there's anything left.
4. Analyze Actual Spending
If there's nothing left, you need to work on lowering your expenses and saving money to avoid the never-ending paycheck-to-paycheck cycle. Only spend the necessary money for a few months to quickly inject cash into your savings pot.
5. Emergency? Stay On Track With A Title Loan
Sometimes, life throws you a curve ball that even the best-laid plans can't account for. When this happens, you don't have to let it ruin your newfound budgeting prowess. There are options, like asking relatives or obtaining a title loan.
The latter lets you borrow up to $15,000, depending on the value of your vehicle, to fund emergencies you can't cover alone. All credit types are welcome to apply for this type of loan, and you don't need to worry about losing the use of your vehicle — the lenders we work with simply place a lien on your title to secure the loan, but you keep your car throughout the repayment schedule.
Get A Title Loan From Title And Payday Loans Today!
Living paycheck-to-paycheck is difficult, but you can break out of being a statistic by budgeting. And if life throws a curveball, you can complete our secure inquiry form online at TitleAndPaydayLoans.com to be connected with a loan representative today.
After speaking with the loan representative about title loans and their process, simply gather the relaxed requirements needed to qualify and get started now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.