So many people out there are living paycheck to paycheck and it’s really sad because there are so many things that you can do in order to save money instead of spend it all.  Yes, if you’re living paycheck to paycheck, it is your fault and you can prevent 99% of the mistakes you have made in the past.  You don’t want to stay poor and I know that but if you keep following these trends, it’s going to be hard to get out of the poor house.

Spend more than what you earn

This is a no brainer but you make $1,000 and you spend $2,000, what is wrong with this picture?  I know it sounds really self explanatory but people don’t get it.  It’s your duty right now to get up and make a budget.  You need to know where every single dollar is going each and every month.

Buying what you don’t need

If you’re in debt, you shouldn’t be buying anything but the clothes on your back and groceries.  I don’t want to hear that you’re going out there to buy a new 52″ LCD TV.  Can you afford it?  No!  If you can’t pay cash for the item, you can’t afford it.  Wait until you pay off all your debts and have at least 6 months of emergency money in your account before you go out and buy those luxury items.  Killing debt is a lot more important than your electronics.

Way too many bills

If you don’t have a budget, you probably don’t know where your money is going.  If you have cable, what kind of plan do you have?  cell phone plan?  Do you see where I’m getting at?  You need to evaluate every bill and see if you can cut back on it.  It’s extremely important that you only pay for what you can afford.  Your cell phone doesn’t need a TV on it nor does it need unlimited texting for an extra $20/month.

Cut up the credit cards

If your credit card bills grow month after month, you’re having some problems and you may want to resort to prepaid credit cards so that you can control your spending.  Many people out there just can’t control what they put on a card and if it’s you, I would strongly look into cutting them up.

In the end, it all comes down to how you spend your money.  If you’re spending more than what you bring in, you have problems!  Create a budget today and try to save at least 10%.  If you can start today, look back a year from now and see how far you got, you’ll be amazed!