Wouldn’t life be a little easier if you had a $1,000 cushion in your emergency fund?
The paycheck-to-paycheck cycle is an easy one to fall into — and a hard one to break.
But trust us: There are ways out — and we want to help.
How to Stop Living Paycheck to Paycheck This Year
One of the best ways to tackle this cycle to the cold, hard ground is to take it step by step. No, you won’t get ahead overnight. This is going to take a little time. But in the end, it’ll be worth it — and it doesn’t have to be hard.
Month 1: Separate Your Spending and Saving Accounts
Let’s start with the basics: Your bank account. Operating everything out of one account can make your finances muddy and contribute undue stress to your money management.
To simplify, open an account dedicated to saving, and put your money to work. One of our favorites is Aspiration‘s Spend and Save account — you’ll pay no monthly fees, and you’ll earn up to 2.00% APY on your savings.
Goal: See if you can start socking away just $25 per month, for starters.
