[et_pb_section fb_built=”1″ _builder_version=”4.27.4″ _module_preset=”_initial” custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” top_divider_style=”ramp2″ top_divider_color=”#E7DFF3″ top_divider_flip=”vertical|horizontal” da_disable_devices=”off|off|off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
By Carmen Chan<\/em><\/p>\n You get paid, then pay your bills, cover your gas, groceries and daily expenses \u2013 and you\u2019re out of cash again. A whopping 47 percent of Canadians say they\u2019re living paycheque to paycheque, according to <\/span>2023 data<\/span><\/a>. That statistic rises to 54 percent amongst Canadians aged 18 to 34, and to 57 percent for 35 to 54-year-olds.<\/span>\u00a0<\/span><\/p>\n In a nutshell, when you\u2019re living paycheque to paycheque, almost all your income is spent on your necessities like housing, childcare, transportation, and food. If you aren\u2019t paid on time or paid less than what\u2019s expected, you can\u2019t meet your financial obligations because you have limited or no savings to rely on. It\u2019s a burdensome situation to be in, one that can feel like a never-ending cycle.<\/span>\u00a0<\/span><\/p>\n Here\u2019s a look at steps to <\/span>stop living pay cheque to pay cheque<\/span><\/a> and how to create a financial cushion:<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”0px||0px||false|false” custom_padding=”0px||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”|-5px|0px||false|false” custom_padding=”||0px||false|false” global_colors_info=”{}”]<\/p>\n How much do you earn each month and how much are you spending? Before <\/span>drawing up a balanced budget<\/span><\/a> or deciding you need to make more money or decrease your rent, look back at the past three to six months of your bank and credit card statements. Categorize your spending into several categories, such as housing, bills, transportation, groceries, eating out, and miscellaneous spending. If you still have receipts stuffed into your drawer, pull them out to dive deeper into what you actually bought, not just where you spent the money.<\/span><\/p>\n How to Track Your Spending and Identify Habits<\/span><\/a>\u00a0<\/span><\/p>\n This is an eye-opening exercise. You may discover you\u2019re spending hundreds of dollars on coffee runs, food deliveries and restaurants \u2013 or that your online shopping habit is racking up hundreds more in expenses. In other instances, it could be your rent and car payments that are eating up far too much of your income. With these insights, you\u2019ll know which categories could benefit from some spending adjustments.<\/span><\/p>\n 6 Tips to Save Money When Eating Out<\/span><\/a><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.27.4″ _module_preset=”default” custom_css_main_element=”margin: auto;” global_colors_info=”{}”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2025\/04\/stress-asia-couple-man-and-woman-use-calculator-fo-2024-11-02-11-09-42-utc-1-1.jpg” alt=”couple looks at budget managing debt and money” title_text=”young person using laptop sitting on chair by window ” _builder_version=”4.27.4″ _module_preset=”default” width=”100%” custom_margin=”||0px|5px||” border_radii=”off|20px|200px|20px|200px” locked=”off” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” custom_margin=”0px||||false|false” custom_padding=”0px||80px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” header_font_size=”35px” header_line_height=”1.1em” custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”]<\/p>\n You\u2019ll need to pare down your spending if you want to stop living paycheque to paycheque. For starters, create a shoestring budget \u2013 one that accounts for your essentials first, like rent, groceries, utilities, transport, and childcare. Then add expenses dedicated to repaying your debts.<\/span><\/p>\n Ways to Cut Costs For an Emergency Budget<\/span><\/a><\/p>\n Pay attention to the difference between your needs versus your wants. Your needs include the fixed costs while whatever is leftover can be used for wants, like shopping, entertainment, and dining out.<\/span>\u00a0<\/span><\/p>\n You might be far off the 50\/30\/20 rule, which calls for spending 50 percent on needs, 30 percent on wants, and 20 percent on savings and debts. But there\u2019s no harm in striving to balance your needs, wants, and savings and debt better.<\/span><\/p>\n How to Save On a Small Income<\/span><\/a><\/p>\n When you\u2019re feeling the financial squeeze of living paycheque to paycheque, to free up your income, you must scale back on some costs. That could mean decisions like:<\/span><\/p>\n These tips might sound like overused clich\u00e9s. But you\u2019d be surprised at how much cash you\u2019ll free up by making only a few of these swaps.<\/span><\/p>\n Will Downsizing Help Me Pay Off Debt?<\/span><\/a><\/p>\n Resolve the anxiety that comes with living paycheque to paycheque by learning how to create a financial cushion via an emergency savings account. Start with the goal of $500 to $1,000, putting away small amounts depending on what\u2019s feasible for your budget.<\/span><\/p>\n Automate these savings so the cash is transferred over to an account each payday. As little as $20 a month will amount to $240 by the end of the year \u2013 that\u2019s enough to cover a small emergency so you can start to break free from relying on your paycheque to make ends meet.<\/span><\/p>\n Tips to Be Financially Prepared for Anything<\/span><\/a><\/p>\n Build on your momentum from cutting costs by growing your income with a side hustle. There are numerous options available to you, depending on your interests, skills and schedule. Some people tutor, drive for a service like Uber or Lyft, or freelance in their line of professional work, like graphic design or accounting. Others sell gently used items on Facebook Marketplace, Craigslist, or apps like Poshmark.<\/span><\/p>\n 4 Reality Checks to Make Before Starting a Side Hustle<\/span><\/a><\/p>\n Sometimes it may seem like you\u2019re taking one step forward, then two steps back with your debt repayment journey. If this is the case, you need to regroup and think strategically about how you\u2019re tackling your debts.<\/span><\/p>\n Make sure you\u2019re making the minimum payment on your debts, but beyond that, you should be intentionally choosing where the rest of your repayment is going each month. Some people opt for the avalanche approach, clearing their highest interest debts first, or the snowball approach, tackling their smallest debts first. The pattern here is they\u2019re giving it all they\u2019ve got extra to a single account at a time, wiping out the debt, and then moving on to their next target, while still maintaining minimum payments on all accounts.<\/span><\/p>\n Escape the Payday Loan Nightmare<\/span><\/a><\/p>\n As you implement the steps above, avoid increasing your living costs as your income rises so you\u2019re continuing to live below your means and save. Consumers tend to fall into lifestyle inflation, spending more as they earn more or when they take home bonuses and other windfalls. Instead, apply these extra bits of income towards paying off debt or building up savings for goals like travel, birthday presents, or big-ticket items.<\/span><\/p>\n 13 Money Saving Tricks to Pay Off Debt Quickly<\/span><\/a><\/p>\n The steps <\/span>to break the cycle of living paycheque to paycheque <\/span>aren\u2019t<\/span> light work by any means \u2013 whether <\/span>you\u2019re<\/span> creating a budget or choosing a <\/span><\/span>debt repayment strategy<\/span><\/span><\/a>, you may feel overwhelmed by the decisions you need to make about your personal finances.<\/span> <\/span>This is where we come in \u2013 if you need a hand<\/span>, <\/span><\/span>contact us<\/span><\/span><\/a>. <\/span>We <\/span>are experts at helping you <\/span>come up with<\/span> a realistic plan to regain your financial stability. <\/span>The fear of being one pay cheque away from not making ends meet is no way to <\/span>live. <\/span>Whether you need budgeting help, a strategy to deal with your debt, or tips to make it easier, if <\/span>you\u2019ve<\/span> got debt; <\/span>we\u2019ve<\/span> got you.<\/span><\/span><\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Almost half of Canadians live paycheque to paycheque. Learn practical steps to cut costs, build savings, and break the cycle\u2014so you can take control of your money.<\/p>\n","protected":false},"author":31,"featured_media":51552,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[117],"tags":[],"class_list":["post-51551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manage-money-better"],"yoast_head":"\nAssess <\/span>Y<\/span>our <\/span>I<\/span>ncome and <\/span>E<\/span>xpenditures<\/span><\/span><\/h2>\n
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Avoid <\/span>L<\/span>ifestyle <\/span>I<\/span>nflation<\/span><\/span><\/h2>\n
Stop Living Pay Cheque to Pay Cheque \u2013 <\/span>P<\/span>rofessional <\/span>S<\/span>upport<\/span> to Make It Easier<\/span><\/span><\/h3>\n