How to Get A Month Ahead in Your Finances

Did you know that 78% of people in the U.S. live paycheck to paycheck according to Forbes?

But what does that even mean?

Living paycheck to paycheck is when the money you earned from TODAY’S paycheck goes toward the bills that are due before you get paid again.

So if something were to happen, and you didn’t get that paycheck, you don’t have a buffer. You are constantly in that cycle of making money then immediately spending it.

Guess what??

There’s another way to live…and it’s awesome!

A year ago, when I got paid I would realize that I had approximately $4 to my name after paying bills.

I know from first hand experience how awful that can feel.

Fast forward to now, and the paycheck I got on the first of July is going towards August’s expenses!

I know…

I never thought I would be able to say that!

It can feel impossible to get ahead when you feel like you are constantly just trying to stay afloat.

So many of us work 40+ hours a week, not including our commute, and barely have the time or energy to focus on anything else.

You have SO much stress in life, I want to help money be less of one (or even better, not a stress at all)!

Here are realistic ways that you can break the paycheck to paycheck cycle and get a month ahead in your finances.

Be honest with yourself.

When budgeting, you need to start where you are, not where you want to be.

It’s important to ask yourself some questions, and to be honest with your answers.

Can you use a credit card and not be tempted to overspend?

Are you spending money on subscriptions you don’t actually use?

Do you even know where your money is going?

Being honest is the first step towards making a change. You need to be realistic with what you are spending now, your spending and savings habits, and what obstacles you could face in your budgeting journey.

Once you answer these questions, you can budget more efficiently and in a way that actually works for YOU and your life!

Get on a zero-based budget

Not everyone will agree with me on this, but in my opinion, zero-based budgeting is life changing, especially when it comes to breaking the paycheck to paycheck cycle.

With zero-based budgeting you give every single dollar a job.

Yes.

Every single one.

I’m not here to tell you what job your dollars should have, just that they should reflect what is most important to you.

Where you spend your money is where you spend your life, plan accordingly.

So sit down with your bank accounts, monthly bills, and variable spending to start deciding where your money needs to go.Personally, I use YNAB to budget and build my sinking funds.

They even have a rule about getting a month ahead! (They call this aging your money).

If you’re new to budgeting and looking for a place to start, YNAB is definitely it.

Here you can access their youtube channel with tons of helpful videos to get you started.

Once you give every dollar a job, you can start to roll over extra, unspent money towards next month and finally break the paycheck to paycheck cycle.

Put every penny you have leftover toward next month’s bills

No amount is too small. They all add up.

Did you get an extra $10 on this paycheck? Put it toward Netflix next month.

Have $3 left in your grocery category? Roll it over to spend on next month’s groceries.

Just understand that this isn’t a quick fix.

This is not a sprint. It’s a marathon. You’ve gotta commit to doing the same little steps over and over until you see the results.

Keep throwing any leftover money toward next month’s bills and you will slowly start to notice a widening gap between payday and when you need to spend that money.

Explore ways to bring in more income

Let me preface this by saying, I totally understand that many people don’t have the time or resources to get a second job.

This isn’t a necessary step, but if your income is relatively the same as your expenses, making some extra money can speed up the process.

Personally, I love things like driving for DoorDash or shopping for Instacart.

You can make an easy extra $50-$100 just working a few hours on a Friday night.

Just don’t forget about taxes!

You can also sell some extra stuff around your house on Poshmark, eBay or Mercari to bring in some extra cash.

While you are trying to get ahead, put all of this extra money towards next month’s finances.

If you can’t increase your income, try to reduce your spending

Don’t underestimate the power of a phone call.

I get it.

I hate calling people too.

But not as much as I hate being in debt. So give some people a call.

Chances are you can lower that cable or wifi bill, or get on a cheaper phone plan that offers the same benefits you have now.

Let’s be honest, you probably have shit cell reception half the time anyway, so don’t overpay for it.

These small cuts in your spending can REALLY add up!

I’m not advocating for cutting everything. If you know me, you know that I don’t believe you need to be “gazelle intense” to pay off debt and save.

Just cut in the places where you won’t really even feel it!

Maybe shave $10 off your grocery budget, or swap date night out for date night in once a month.

For ideas on how to save more money and reduce your expenses, click here.

Be patient with yourself

Budgeting isn’t linear because life isn’t linear.

You aren’t going to break the paycheck to paycheck cycle overnight.

There may be setbacks in your journey and that is totally okay and normal.

Just keep making small steps in the right direction and eventually you will have the security of being a month ahead in your finances!