How to Budget When You Live Paycheck to Paycheck

By Laura Onyeneho | Houston Defender | Word In Black This post was originally published on Defender Network(WIB) – Living paycheck to paycheck is a financial situation where an individual or family’s income barely covers essential living expenses such as housing, utilities, groceries, and transportation. If one paycheck were to be missed, it would lead to significant financial strain and difficulty in meeting basic needs. This precarious financial situation leaves little room for saving or investing, making individuals vulnerable to unexpected emergencies or income loss.According to a survey conducted by Payroll.org, a staggering 78% of Americans find themselves living paycheck to paycheck, marking a 6% increase from the previous year. This means more than three-quarters of the population struggles to save or invest after covering their monthly expenses.Chawn Payton, a Northwestern Mutual financial advisor, says that living paycheck to paycheck often means “spending the money before it even hits the bank account” and being unable to “level up financially.” This can make it difficult to save for the future or enjoy life in the present. How Did We Get Here?The root causes can be attributed to increased spending, which is outpacing income growth. High inflation and rising interest rates are...