Many Americans, from younger adults to seniors, can easily find themselves living paycheck to paycheck. According to the Bank of America Institute, 25 percent of American households are believed to be living this way. It’s undoubtedly frustrating to be barely able to meet basic obligations like rent or mortgage, utilities, groceries, transportation, and minimum debt payments.
The reasons for this are simple. People’s incomes just don’t match up with their expenses. They become victims of lifestyle inflation by trying to live beyond their means. As a result, they’re buried by high-interest debt payments from credit cards or loans.
To escape the trap of living paycheck to paycheck, financial professionals recommend five steps to break the cycle:
- Create and stick to a budget
- Pay yourself first by putting money in savings
- Build an emergency fund
- Pay down as much high-interest debt as you can
- Look for ways to boost your income
You may not see results overnight. However, having a sound plan can help you get on the road to better financial health and reduce stress over how to stay financially afloat.
Seniors Deserve a Better Cushion
Additional retirement income can give you more breathing room. Here at Council of Seniors, we’re committed to getting Congress to pass The SAVE Benefits Act. Due to low Social Security cost-of-living adjustments (COLAs), the amount of $581 was withheld from seniors. The passage of this bill will ensure that money is returned.
Signing our petition builds an army of Americans seeking action. Encourage friends and neighbors to help us, too! For too long, Washington politicians have failed to answer the call for action.
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