Are you living paycheck-to-paycheck? If so, you know how exhausting it can be to see all your hard-earned money disappear just as quickly as it enters your bank account each month. This revolving door of earning and spending makes it difficult to feel like you have any control, and planning for the future is simply impossible. To break free from the paycheck-to-paycheck cycle, follow these 9 steps.

1. Create a Budget

According to a 2019 Charles Schwab study, 59% of Americans were living paycheck-to-paycheck, and that number continues to rise. In fact, another study found that nearly 1 in 10 workers who live paycheck-to-paycheck make over $100,000 a year. In order to better manage your money, the first step is to create a budget. Read over recent bank statements and make a list of all your spending and earnings. Then you’ll be able to see what changes need to be made.

2. Focus On The Necessities First

Before you start trimming expenses, you need to make sure your basic needs are met. Make room in your budget to pay for:

• Food
• Shelter (your mortgage or rent)
• Utility Bills
• Fuel

Once you’ve comfortably accounted for these necessities, you can rest assured that your family is cared for. Then you can begin to remove expenses there aren’t as important.

3. Cut What You Can

Trim expenses that aren’t necessary. This includes extras like:

• Gym memberships
• Eating out
• Subscription services
• Cable

Each bill may be small, but they add up quickly, and they’ll put money in your pocket to cut down on debt. Best of all, this is just temporary until you can break free from living paycheck-to-paycheck.

4. Get Rid Of Debt

According to data from the  New York Federal Reserve, total household debt rose by $394 billion (or 2.4%) in just the fourth quarter of 2022. Credit card, mortgage, auto loan, and student loan debt also increased significantly. In order to get rid of debt, you need to stop acquiring it. That means no more credit cards or loans until you’ve caught up. Instead, start chipping away at your debt. Dave Ramsey recommends using the debt snowball strategy.

5. Create An Emergency Fund

A State of Personal Finance Study revealed that 60% of Americans have an emergency fund in place. This dedicated fund provides a cushion for emergencies that can pop up. Dave Ramsey recommends following his 7 Baby Steps toward creating a $1,000 emergency fund which will give you peace of mind and a nice cushion for unexpected financial strains. Prioritize setting aside a small amount of money from each paycheck and you’ll have an emergency fund in no time.

6. Sell Things

Sometimes cutting costs and eliminating debt just aren’t enough to get you out of a paycheck-to-paycheck cycle. Start looking around your home and sell anything that isn’t necessary. This includes clothing, baby items, furniture, and toys. That cash will help you speed ahead toward being debt free and in control of your spending habits.

7. Start A Side Hustle

Aside from selling items, you can also get a part-time job. Look for something offering flexible evening or holiday hours that work around your busy schedule. You could drive for Lyft or Uber on the side, substitute a few days a week at your kids’ school, or delivery groceries through Instacart. Although it may be hard, it’s important to remember that this is temporary, until you can get out of the cycle of living paycheck-to-paycheck.

8. Live Below Your Means

You can’t live the same lifestyle and expect different results. According to Chase Bank, it’s wise to go by the “28% Rule.” That means your house payment should never be more than 28% of your gross income. Consider opting for a more affordable home and car. By downsizing in these ways, you can save a great amount of money on utilities, fuel, and insurance premiums, as well.

9. Don’t Give Up

Transformation and growth are hard, but living paycheck-to-paycheck forever will be even harder. It may seem like it’s taking forever to pull yourself out of this cycle, but don’t give up. Remember your goals and look forward toward a future where you’ll be debt free and in control. That way, you’ll be able to afford that big house, that oversea adventure, or that college tuition for your kids.

If you live paycheck-to-paycheck, know that you’re not alone. In fact, a majority of Americans are in the same boat. Luckily, you don’t have to live this way forever. By following these 9 steps, you can find freedom from this debilitating cycle.