Escaping the ‘Paycheck-to-Paycheck’ Lifestyle

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THE MAJORITY OF YOUNG PEOPLE ARE LIVING PAYCHECK TO PAYCHECK.

And the research has proven this fact in different studies but I shall present only one here.

Shockingly some 60% of millennials who make more than 6 figures a year live paycheck to paycheck!

What is going on here?

And how can we escape this lifestyle?

I have researched the causes of wealth and poverty for a few years, resulting in a few books being published (see here, here and here). I have also written some articles documenting this information in a clear coherent way (see here, here and here).

I have discovered that the primary reasons why so many people live paycheck to paycheck are due to the following factors:

Spending money on luxuries and unnecessary things that add zero long-term value to your life. As Warren Buffett said, ”If you buy things you do not need, soon you will have to sell things you need”.

Numerous studies have confirmed that young people spend more money than they need to. And anecdotal experiences confirm this fact such as the large number of homeless young people who have claimed that their financial failures were to blame for their horrible condition.

Unfortunately, young people are hard-hearted and hate listening to wise sayings from the experts and the people of knowledge—with disastrous long-term consequences.

Wasting time on things like entertainment which makes millennials miss out on educational and self-improvement opportunities. This is true for most young people in colleges and part-time work. The open disregard for knowledge, work and saving was clear on every single student that I interviewed.

The universities have become large bureaucracies where people are brainwashed and used for their financial value i.e. fees instead of motivating and creating an independent entrepreneurship class. As I have stated numerous times with clarity, ”You need the skills to pay the bills.”

Jumping into relationship without proper planning particularly on the long-term financial consequences of this behavior. This is especially true for folks from ethnic backgrounds and the white working class who enjoy sexual relations without proper planning. In fact, Conservative Protestants who make the least money in the United States according to one report by Lisa A. Keister, Professor of Sociology at Duke University, is partly due to having a high fertility rate.

Lacking a strategic view of life that is making decisions not in view of the long-term goals and desires is another reason for living from pay-check to pay-check. This is when you make decisions for short-term reasons rather than long-term reasons.

Unfortunately, most millennials make their daily decisions without thinking through the long-term effects.

And this is a recipe for financial failure.

I have also discovered the quickest way of escaping the paycheck to paycheck lifestyle. Here are some of these findings:

Long-Time Perspective, making daily decisions in light of the long-term consequences, a secret of those who climb from poverty to wealth.

The Harvard academic Dr. Edward Banfield researched the reasons for upward socio-economic mobility for decades. His study concluded in the publication of a book titled The Unheavenly City where the primary reason why people climb from rags to riches is because of having a ”long-time perspective” which is making current decisions in light of the potential financial consequences in the long-term.

This important truth referenced by Dr. Edward Banfield in his study, I discovered the same fact to be the cause of much success in the lives of self-made millionaires. All you have to do is to climb the mountain and take a view of the ‘big-picture’ rather focusing on individual rocks.

Developing a strong sense of spirituality. I discovered that most millionaires pray regularly, a discovery consistent with research conducted by Thomas Stanley and conducted by Lisa A. Keister where religious services were associated with wealth. According to Ohio State News, ”The study found that people who regularly attended religious services tended to be more wealthy.” The news agency referenced the studies conducted by the sociology professor Miss Keister. It makes sense because religious experiences and observances can lead to more discipline and knowledge regarding financial activities [The latter conclusion is my own based on my experiences with real people who became successful after developing discipline, motivation and knowledge through religious experiences.]

Placing a strong focus on educational achievement whether it is formal qualifications or informal self-study like reading books, articles on self-help, self-improvement and financial literacy.

I discovered the ultra-rich super-successful men and women who climbed from poverty to wealth were constantly becoming more efficient and improving their knowledge base, skill-set and character.

Long hours, investing significant period of time practicing your craft till perfection i.e. writing for hours daily for years without end. The same principle can be used for spending many hours working on your business, occupation or any skill you wish to develop particularly for a future financial payoff.

This is the hallmark of all achievers, the ability to sacrifice time seemingly forever in order to achieve an outcome, a successful outcome that is not visible in the beginning of the journey. One consequence of this methodology is that you will have neither the time for socialising with your friends nor the energy or even the money. This scares some people but is the best thing to do for success.

In summary, the ‘paycheck to paycheck’ lifestyle is incredibly stressful and increasingly common amongst the masses particularly the millennials, who seem to never possess any spare cash for almost anything anymore.

Surprisingly, the reasons for this pathetic lifestyle are all things that anyone can control!

Anyone can decide right now to stop spending money on unnecessary things, stop wasting time on entertainment, stop from jumping into relationships and stop this lack of strategic vision that is needed for real success.

But few ever will and so the pattern of financial failure shall continue.

A contributed article by Zalghi Khan