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How To Stop Living Paycheck to Paycheck When You Make Good Money
According to numerous reports, about half of all Americans say they live paycheck to paycheck. This isn't limited to low- or moderate-income households, either. Almost half of those earning six figures feel the same way. For You: Try This: If you're struggling to make ends meet and feel like you never have enough money to meet your financial goals — like saving for a down payment or paying off debt — you're not alone. But your situation isn't hopeless, either. GOBankingRates reached out to several financial experts about how to stop living paycheck to paycheck when you earn enough money not to. Here's what they said. Sean Fox, president of debt resolution at Achieve, suggested making a spending plan or a budget. 'Most people don't want to 'budget' because it sounds hard, tedious and complicated. It's not. It's just a way to understand your finances in simple terms, with an eye on goals you've set,' Fox said. 'That means taking time to consider what you really want in your life, both in the long run (e.g., retirement, vacations, buying a house) and short run (e.g., a new piece of furniture, clothing, time for your favorite hobby or pastime). Then you can build your spending plan around what it will take to reach those goals.' No matter how much money you earn, you should always keep track of your spending. It's all too easy to fall into the trap of lifestyle inflation, something that occurs when you start spending more because you start earning more. You could be earning $100,000 a year and still have very little to show for it at the end of the month…if you're not tracking your expenses. Knowing how much money you spend and on what can help you figure out where the problem areas are and fix them. 'Keep a record of every single expense (online and off) you and everyone in your household makes for a couple of weeks,' said Fox. 'Most people have some surprises, and are then in a better place to make some decisions on smart spending that's in line with the budget.' Find Out: The Federal Reserve found that 82% of American adults have a credit card, while over 40% regularly carry a balance. While not a guarantee, if you're living paycheck to paycheck while earning a decent income, chances are you have some credit card debt, too. If that's the case, Fox suggested paying off this debt first. 'With interest rates over 20%, this is a huge expense — both in terms of what you're paying to the credit card issuer and the fact that you're effectively paying much more than the purchase price of what you bought,' Fox said. 'Plus, if you are carrying debt and paying all that interest, you have no opportunity to do something positive with that money — like saving for retirement and other goals you've set.' If possible, increase your monthly payments to pay off your debt sooner. If that's not an option, see if you can get a balance transfer card or a low-interest debt consolidation loan instead. Depending on the new interest rate and term, you could end up paying less in interest and getting rid of your debt sooner. There are a lot of reasons why people who make plenty of money live paycheck to paycheck. One of the big ones is that they don't differentiate between wants and needs. 'Whether it's about 'keeping up with the Joneses' or just preferring to not do so, the lack of thinking about whether a given purchase will meet a 'want' or a 'need' fuels overspending and credit card debt,' said Fox. 'It is much easier to simply buy what you want than to develop the habit of stopping to consider each purchase, and whether you really need it in your life.' All of this leads to overspending and living beyond one's means. If you're living beyond your means, take the time to distinguish between your wants and needs. Once you've done that, see if you can take it one step further by living below your means. Living below your means 'provides some cushion, a way to save and insurance that you are not living paycheck to paycheck all the time,' said Fox. Similarly, find ways to limit your discretionary spending. 'Cutting back on nonessential purchases is a great way to stop living paycheck to paycheck,' said a Quicken spokesperson. 'It is important to consider how many nonessential purchases [you are] making each week that you could either go without or make more cheaply at home.' You don't have to do it all at once. You can use a budgeting app or expense tracker to see where your money is going. Or, once a month, you can look through your bank and credit card statements to find out what you spend money on — and start finding small ways to cut back. Having goals, whether they're short or long term, can help motivate you to get a hold of your finances. 'By prioritizing your financial goals and having a time frame in mind, you can maximize your savings, stay motivated and move closer to the finish line,' said the Quicken representative. But don't fall into the trap of trying to achieve those goals all at once. Having that time frame is key. With it, you can avoid taking too long for a certain goal while also keep yourself moving toward it. For example, say you want to save your first $1,000 in an emergency fund. If you don't have quite that much money at the end of the month, that's OK. Start with a smaller sum — like $100, $200 or whatever you're comfortable with. If you know you want to save that amount within three months, break down your monthly savings goals accordingly — $1,000 divided by three. Once you've achieved a few short-term goals, you can start thinking about those long-term goals — like retirement. Joe DiSanto, a financial expert, consultant and the founder of Play Louder, suggested making a 'financial independence roadmap.' 'This is a long-term plan to reach your retirement goal, which includes a savings plan and required levels of investment return,' he said. As you work on your spending and savings habits, it's important to be consistent. 'You need to be consistent and make it part of your life,' said DiSanto. 'You can't 'wing it' or 'go with your gut feelings.' It's like going to the gym or maintaining a healthy diet. I use those examples specifically because most people struggle with that, too.' You can go about this in many different ways. For example, you could get an 'accountabili-buddy,' someone who can help you stay on track financially. Or you can do things like automate your savings or use a budgeting app. Whatever works for you, do it and be as consistent as possible. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 7 Luxury SUVs That Will Become Affordable in 2025 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on How To Stop Living Paycheck to Paycheck When You Make Good Money
Associated Press
14-04-2025
- Business
- Associated Press
Freedom Debt Relief settles over $20 billion in consumer debt, wins USA Today's America's Best Customer Service 2025 award
Freedom Debt Relief is the sole debt settlement company recognized in USA Today's rankings of companies delivering the best customer experience. SAN MATEO, Calif., April 14, 2025 /PRNewswire/ -- Freedom Debt Relief, one of the largest and longest-running providers of debt settlement services in the U.S., has surpassed $20 billion in debt relief for struggling consumers. In addition, Freedom Debt Relief was the only debt settlement company to receive USA Today's America's Best Customer Service 2025 award, recognizing companies that offer the best customer service in the country. These landmark achievements underscore Freedom Debt Relief's unwavering mission to help everyday Americans regain control of their finances. Since its founding in 2002, Freedom Debt Relief has served more than 1 million clients, settling over 5 million accounts and delivering life-changing results to individuals nationwide. 'Surpassing $20 billion in debt settled is more than a number. It represents real impact for real people,' said Freedom Debt Relief President Sean Fox. 'It means millions of burdens lifted and a better financial future for our clients. We're proud to be the resource people turn to when they need a helping hand.' America's Best Customer Service 2025 is a ranking of 600 service providers, brick-and-mortar retailers and online merchants 'that excel in delivering the best customer experience using a variety of measures, including public data and a large-scale confidential online survey conducted among U.S. customers,' according to USA Today and research firm Plant-A Insights. This honor reflects Freedom Debt Relief's continued investment in delivering empathetic, results-oriented support for clients navigating some of life's most difficult financial moments. The rankings are based on the results of more than 687,000 company reviews from 67,000 consumer interviews, making it one of the largest independent customer experience studies fielded in the country. Freedom Debt Relief is the only debt settlement company included among the 47 banking, insurance and financial services industry firms featured in the rankings. Freedom Debt Relief has relationships with over 4,000 creditors and uses over 20 years of consumer debt data, artificial intelligence and proprietary technology to optimize negotiation strategies that meet clients' individual needs. Through its proven debt settlement program, Freedom Debt Relief negotiates directly with creditors on behalf of its clients to reduce the total amount owed on unsecured debts. Clients enroll in a custom program, during which they make monthly deposits into an FDIC-insured dedicated account. As funds build, Freedom Debt Relief's expert negotiators work to settle enrolled accounts for less than the amount owed — often leading to significant savings and a faster path out of debt. Consumer-centric approach driven by transparency and innovation A personalized, client-first approach is what sets Freedom Debt Relief apart. Every Freedom Debt Relief client is supported by a dedicated team that combines empathy with expertise, helping them navigate the emotional and financial challenges of debt. Throughout its over 20-year history, Freedom Debt Relief has maintained a steadfast commitment to its clients and has been a pioneer of numerous industry innovations, including: 'We built Freedom Debt Relief to give people hope, dignity and an effective solution when they have a financial hardship,' Fox said. 'This $20 billion milestone reflects our significant impact helping people across the nation get a second chance at financial freedom.' Freedom Debt Relief remains committed to redefining what's possible for Americans in debt, and turning their financial goals into reality. Freedom's recognition by USA Today as a top customer service provider further reinforces its reputation for trust, reliability and results. From the first conversation to the final settlement, Freedom Debt Relief delivers award-winning service that puts the client experience at the center of everything it does. To learn more about the Freedom Debt Relief program, visit ABOUT FREEDOM DEBT RELIEF Freedom Debt Relief is one of the largest and longest-running providers of debt resolution services in the United States. We help consumers take control of their finances by giving them a proven plan to relieve their debt burden — and in the process, help them make better financial decisions in the future. Working on behalf of its consumer clients, Freedom Debt Relief negotiates with creditors to reduce the amount of debt they owe. Freedom Debt Relief is an accredited debt resolution company based in San Mateo, Calif. and has served more than 1 million consumers, helping to resolve over $20 billion in debt since 2002. Press Contact [email protected] View original content: SOURCE Freedom Debt Relief
