Emerging CPAs

Don’t Live Paycheck to Paycheck

Wouldn’t it be great to start your career making the big-time salary you worked so hard for in school? Unfortunately, if you’re like most young professionals, you haven’t started receiving the big-time paychecks yet. Everyone has to pay their dues and work their way up the professional ladder. For many, unfortunately, that means living paycheck to paycheck.

Check out these statistics from a recent CareerBuilder.com survey:

• 41 percent of workers often or always live paycheck to paycheck
• 33 percent don’t have enough income to live comfortably
• 16 percent work more than one job to make ends meet
• 20 percent don’t set aside money for savings each month
• 25 percent don’t participate in a 401(k), IRA, or other retirement plan

Struggling to make ends meet isn’t fun, but there are ways to stretch your dollar and ease your stress:

Use direct deposit – If your paycheck goes directly into your bank account, you won’t be tempted to spend your cash as easily.

Pay yourself first – Put a small amount into a separate savings account each week, even if it’s as little as $10 a week. If you don’t touch it, it will up after a while.

Track your spending – One way to make your paycheck last longer is to set a budget and stick to it. Be wary of eating out. According to CareerBuilder.com, the most popular reason for going over budget was eating out.

Skip the ATM – Minimize trips to the ATM. Try going once a week, and giving yourself a weekly cash allowance. This will force you to cut back on lattes and lunches out, and it will make a big difference on your savings over time.

Evaluate your paycheck – Don’t sell yourself short. If you feel you deserve more than what you’re getting, consider a salary negotiation with your employer. Just make sure you do your research, and approach the situation the right way.

For more helpful savings tips, visit www.FeedthePig.org.