Do you remember those golden high school days? How every time you received those couple of bucks from your parents or relatives, or from daily chores you had to do, you felt so proud and rich.

So what on earth happened today that even after earning pretty handsome amount each month, you are not satisfied.

No matter whatever you do, you can’t avoid debts and you’re living paycheck to paycheck.

How come anything you like or want to have, ends being a credit!

Stress, depression, raging quarrels with your partner, hammering credit card balances and heavy thumping of payday loans, all are making you paranoid to your knees.

It’s like you are not existing in this harsh world of debts, paychecks, and budgeting, but your shadow trying to escape this harsh vandalism.

But there’s always a silver lining. We are humans after all. We have a strong sense of reasoning and powers of problem-solving.

Here are your answers to how you can avoid debts and change your paycheck to paycheck lifestyle.

Sort out your expenses:

Get a compact view of where you spend, how you spend and on what you spend. This is very important.

Once you are done with this, you will see that you are having no debts around you, plus you will have opportunities to save more for the future.

Sort out the things you can do without and the necessities you need the most. It’s not that every month your expenses will be the same.

Try to maintain a handwritten record of expenses. Jot down every penny you are spending, from noodles to your recharge of Netflix.

If you have your expenses sorted, you will be able to make decisions with ease, as to where strip down costs and where to put extra. Doing calculations in your mind help your brain to function better, but it does little to financial management. So do your bookkeeping first.

Understand your daily needs. Groceries are more important than getting your nicotine and beer fix.

If you find budgeting a brainstorming task, here are a couple of tips for you:

Envelope your expenses:

This a simple but promising strategy to manage expenses. As it is assumed that you are living paycheck to paycheck, this method should be useful.

On your every payday, make envelopes to divide your expenditures; like one envelope for bills, one for groceries, one for repairing cost (this can also be used as emergency funds), one for gas, one for luxury spending, and so on.

If you can finalize amounts and set limits to your expenses, you will be able to cut down unnecessary expenses.

You will just have to follow the rule that you can’t refill the envelopes till the next payday.

Make your income counted to zero:

This road is for the reckless drivers who want to spend every penny of their income.

This is how it works.

You have received your paycheck! Good! Now pin up a long list of ‘happening expenses’ and ‘to happen expenses’ for this month.

The beauty of this budgeting is you will apply every bit of your cash a value. How you will do that is up to you.

Every time you are left with an amount after you are done with sorting out your expenses, find a new mode of expense for that amount; say a new sofa, a new suit, extra groceries, or adding it up for a new cell phone, tablet, or whatever you find purposeful.

If you can’t find any worthy expense, stack your remainder to savings.

If you have rising debts on your accounts, use the extra money to pay more to get rid of debts fast, or make extra monthly payments for your loans.

Now that you‘re done with a proper monetary structure to follow, let’s talk about the real devil, ‘Debts’.

Which debts are important:

I always advise people to count the savings before counting debts.

If you go on accumulating credits without measuring your chances of repaying them, then by no way you can break the hideous chain of debts.

But there are also credits that you can’t avoid, else it would be impossible to survive. Loans such as mortgage, auto loans, student loans and keeping one or two credit cards have become a necessity for us these days.

But given your condition of fragile financial standing, you need to be wise in choosing debts. Your main target will be to complete the monthly payments for basic loans and credit card bills before yougo on owing more debts.

So you need to do more budgeting as that’s the key to avoid debts.

Suppose you earn $3000, and every month you pay an overall of $1500 for loans and bills, then your priority should be to make your living within $1500, and try to save some if possible.

So your doors to a new laptop, new TV, expensive cell phone plans, fancy eating outs, pub-hopping, casinos all are closed for the time being.

Be satisfied with sausages. The debts are busy eating your desserts!!

If you think getting on with debts is easy, then check out this small post on Death and debt – American indebtedness is wrecking families.

More tips to avoid debts while living paycheck to paycheck:

  • First to last, follow a budget that suits you the best.
  • Avoid payday loans and borrowing money from friends and relatives.
  • Avoid swiping credit cards everywhere.
  • Avoid drugs and alcohol; live a happy and healthy life.
  • Before spending on expensive decisions, always think of any better option where you can invest the amount.
  • Savings, savings, and more savings. The more you save, the more you have. To know how to save more visit here: quick and easy ways to save money .
  • Don’t just live paycheck to paycheck; at least improve your situation by earning extra whenever and wherever possible.

There was this Australian war-hero who wrote a poem called Fray. Before I end this discussion, I would love to quote a couple of lines. Make sure your spending habits on your every payday do not become like this, or it will be impossible to escape the debt wolves.

Once more into the Fray…

Into the last good fight I’ll ever know.

Live and Die on this day…

Live and die on this day…”- Jon Treloar.


Author Bio: Andy Masaki is a blogger at Penny Less Dad and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life.

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