Live Paycheck To Paycheck

Thought for the day: "A nickel ain't worth a dime anymore." - Yogi Berra

It's the most repeated sign of hardship. "They were living paycheck to paycheck." The saying implies that someone (usually a family) has hit such financial hard times that they can barely make it to the next payday making sure all the bills are paid. I have another phrase I use for this situation. It's called LIVING WITHIN ONE'S MEANS.

What are one's means? For starters, you should never be spending more in one month than you have coming in in that month. That includes not putting anything on the credit card you don't have the cash to cover when the bill is due.

Next, you do not NEED cable. There are many other extras that have become a part of everyone's monthly expenses, but I want to pick on cable for a minute. Cable is an extra expense, not a utility. I grew up with three channels plus PBS on the TV. If you wanted to change the channel you got up, walked across the room and turned the dial on the TV set. Shocking, I know. I didn't miss out on anything in my childhood, however, and we didn't miss all the extra channels in the least.

When I discovered most of the rest of the world had cable TV I thought, "What a waste of money. People actually pay for something they could get for free?" I know, I know. It's not the same thing. Just like satellite radio offers much more than free antenna radio. It's an extra expense and if you can afford it, good for you. But if you can't pay the balance on your credit card you can't afford any extras. Period.

Here's what got under my skin on the cable issue. When I got out in the real world (where everybody had it) I met people who would complain about having no money. They were late paying rent every month. They were worried about getting the electic bill paid. Yet they had SEVENTY FIVE CHANNELS on their TV! And usually it was a big screen.

So if you are living "paycheck to paycheck" my first bit of advice is CUT THE CABLE! Next, when you start to get ahead in the slightest amount don't stop living this way. It's called living within your means. Unless you are bringing home twice what you spend every month and have an emergency cash savings of 6 months of expenses you don't have the means to spend any extra money. There will be emergencies and you will need that cash someday. Live paycheck to paycheck and stick the extra moolah in the bank.

Savings Tip of the Day: Unplug your unused appliances. Also your phone chargers. While not supplying power to your cell phone a charger still draws an electrical current and runs up your electric bill.