The average American today maximizes their spending according to how much they make. If a person makes $3,000/month they look for ways for to spend that money every month. Adding a monthly payment here and there. That is also why the average American is one paycheck away from financial chaos.
If for some reason, you were laid off for 15 days and you did not receieve a paycheck, would you feel the financial hit or would you be able to keep living as if you were paid? Can you take a pay cut today? Many people would answer this with a sad answer. This is why it is vital to have an emergency fund in place to protect yourself from something going wrong in your life.
Live on less than you make and save for a rainy day or month!
good post. we definitely have lived paycheck to meager paycheck, fearing the unceratain but never doing anything about it. Until now. we have 1k in savings, almost debt free, and next step is to save 3-6 months of living expenses.
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