Stuck Living Paycheck to Paycheck? Here’s How to Break Out of It

Stuck Living Paycheck to Paycheck? Here’s How to Break Out of It

Did you know that many people who make six figures are broke before the month is over?

Yes way!!!

In the 4 years that I have been a financial coach, I have encountered it time and time again.

Yes really!!!

It is true.

It may be happening to you at this moment and you may have been thinking for a while “What the heck is going on? I make decent money!” But even at 6 figures, you find that by the end of the month you don’t know where it all goes. It feels like as fast as it hits your bank account, it’s left.

Why does this happen?

That is a great question  =)

First numbers don’t lie. The rules of math always apply.  1 minus 1 is 0.  Think of it this way if Johnny picks 100,000 apples in 1 year and then eats/gives away/trades/cooks 99,999 apples, Johnny will have 1 apple left at the end of the year.

Second, most people don’t have a plan for their apples or their plan goes as a far as “I earn 10 apples and I spend 10 apples, in fact, I also owe 5 more apples to the guy down the street.”

Here is the nugget: If you don’t have a plan for your money. Someone else will have a plan for you. 

This is why people live paycheck to paycheck.

You see, there will always be someone that will tell you what to do with your money. Buy this car. Buy this meal. Buy this outfit. Pay this bill. Pay this interest. Pay your taxes. This is on sale. For just 3 easy payments order today. Buy today and pay tomorrow. And the doozy… pay me to watch your kids.

You get the point.

Here is how to have more money at the end of the month.

1) Just like time, you need to tell your money where to go. If you want to tackle time management, you need to plan out what you are doing daily and monthly with your time. That is how you get more things done and don’t waste time. If you want to tackle money management you need to plan out what you are doing daily and monthly with your money. That is how you get more money at the end of the month and don’t waste money.

Need help with all of this? Click here.

No one wants to be on a budget. I get it. Solution: set up a spending plan, not a budget. What’s the difference? A lot and not much; it all depends on who you are. Some people don’t want to feel like they have no freedom to do what they want to do because they are on a “buuuuudget.” I hear it from my clients all the time. Then I say to you create your smart spending plan like my client did. We finished up her spending plan on our coaching call not too long ago.

“I really want to thank Michelle for all the time she invested helping me create a spending plan (that doesn’t feel like a budget), showing me where I can easily save money, and setting a plan to eliminate all of my debt by this coming January. She even went WELL past the time set for our call and I appreciate that even more than I think she knows! I would recommend Michelle in a heartbeat, she is worth more than what she asks!”

– Synia Wright | 
Internet Sales Manager at Holt Chrysler Jeep Dodge | Euless, TX

Create your spending plan here.

2) Stop eating out. A good amount of money that people earn gets flushed down the toilet. Literally. Eating out actually costs even more when you add it all up. It isn’t just the price of the meal. Factor in tip, parking, valet in some places, and don’t forget the gas you used to get there. And some of you will offer to pay the whole bill. That turkey sandwich now cost you $45.

I am not saying don’t ever eat out but don’t eat out all the time.

Here is when you know not to eat out.

• You already have food in the fridge
• You are behind on bills or payments
• You didn’t plan your meals ahead of time
• You are spending more than $50 total per person on food a week

I worked with a couple last week, I love these clients, and we found about $540 for the month in excess spending due to eating out! Want to find money in your spending? Click here.

3) Forget instant gratification and focus on long-term achievement. Let’s face it, we like to feel good. It feels good to buy yourself a new pair of shoes, or to take the family out and buy them lunch or to even help out a friend in need or a worthy cause. The one thing that this all has in common is that it fulfills an instant gratification. And one instant gratification leads to another instant gratification that leads to another instant gratification. Pretty soon you dropped all your quarters in the game and it’s over. If you haven’t taken your family on an adventure type-of-vacation to somewhere tropical, not just visiting an aunt in Reno or something and calling it a vacation, then you are giving up long-term achievement for instant gratification.

This is exactly how my husband and I did the following last year:

• Spent 5 days in Nicaragua with amazing friend’s celebrating their daughter wedding
• Bought our second home and turned our first home into a cash flowing rental
• Spent a week in Belize during Christmas helping bring Christmas to the King’s Children’s home orphanage plus snorkeling and lots of horseback riding
• Took 6 weeks off of work so that my husband could film HGTV DesignStar Season 8
• Paid for a BMW X5 cash (First time doing this and it was such a rush)
• Whisked my husband away for our 5 year anniversary for the weekend to San Francisco and Las Vegas where we watched Le Reve, danced all night to Above and Beyond at the Wynn and drove a Lamborghini LP570, a Ferrari 458 Italia and a Jaguar XKRS through the red rock canyons at World Class Driving.
• Gave more than 10% of our income to charities, church, and organizations helping those in need.

Like Anthony Robbins says “I don’t share this to impress you but to impress upon you…” that you can have it all and do it all with the proper mindset and plan in place.

I know this all too well because over 10 years ago I had 4 credit cards in collections, a car reposed, creditors calling and less than $25 to my name. I still have the bank receipt that showed my balance $22.21 when I closed that account. What was the point of keeping it open when the amount that I had in the bank, I could keep in the back pocket of my jeans. And no, I didn’t marry into money. In fact, when I met my husband in 2005 he was driving an old Honda Civic with the left passenger side door totally bashed in, $25,000 in debt on credit cards which he acquired from starting up his graphic and web design business. Everything we have, we built brick by brick, penny by penny.

What can you do? Decide to do something about it. You decide: Where do you want to be 8 years from now? What do you want to be doing? Where do you want to vacation? Where do you want to live? What do you want to do with your babe on your anniversary? It starts with your spending plan. Click here to schedule a life-changing session with me now.

Your financial coach,

Michelle Tascoe | Life Coach
Money | Debt | Accountability
Office | 209.288.9956
Email | mimitascoe@gmail.com

Thanks for reading!

P.S. I’m also looking for guest blog authors, people to interview for my newsletter and volunteers for free coaching so I can create new content that my readers would benefit from plus help you at the same time get back on track with finances, work, and life.

Together let’s make a difference in the world, make more money, help a ton of people and have a blast while doing it!

If you want to find out how financial coaching can help you reach your money goals call or email me for a complimentary coaching consultation