Profitt Report: How to break the paycheck-to-paycheck lifestyle

Photo credit: MGN

Nearly 78 percent of US workers are counting down until payday, living paycheck-to-paycheck according to a Career Builder survey.

“We start with all our families a real simple budget to find out what are they spending on a monthly basis,” said Jason Cryderman, president of Great Lakes Investment Advisors in Midland.

He breaks down some simple strategies to get out of that paycheck-to-paycheck lifestyle.

“You have money you need to spend like on bills, food, clothing, groceries,” Cryderman said, “but there's a lot of money people spend unknowingly throughout the month or year on what I’ll call discretionaries.” Those discretionary purchases are the extras you don’t really need such as a boat, restaurant meals and vacations.

If you can watch this spending for a month, identify where the money is going, that’s a big step. Then comes the painful part: cut some of those unnecessary purchases.

“Free up some cash and put that money aside,” Cryderman said, “whether it be a dime, a dollar, $5, $10, we have to start with something.”

Once you start saving, it’s important to leave that money alone.

Cryderman said you could automatically deduct part of your paycheck into a hard-to-reach account or enlist some help.

“It’s an account set up in two names, so you could have a spouse or a mom or somebody else, a family or friend you trust,” he said. Then, when you want to deduct money from this account, you need the second person’s okay in order to take the money.

The Profitt Report wants to hear from you - please send consumer questions and story ideas to ProfittReport@WSMH.com

close video ad
Unmutetoggle ad audio on off

Trending