Ask Chuck: How to stop living paycheck to paycheck

Dear Chuck,

When our child was born two years ago, my wife and I decided that she should temporarily become a stay-at-home mom. Since then, we have struggled financially — oftentimes living paycheck to paycheck. We want to break out of this cycle but need your help.

Struggling Small Family

Dear Struggling Small Family,

Congratulations on starting a family and doing your best to support all of your responsibilities as a husband and father. At Crown, we have helped families break out of this cycle for more than 48 years. There are brighter days ahead.

Living without a safety net

The expression “paycheck to paycheck” describes the situation in which a salary is devoted to cover expenses, with no margin for error. If income is lost, bills cannot be paid, and that applies to people at all income levels. The Covid pandemic exposed the millions of Americans who had to live without a financial safety net because they simply did not have adequate savings.

In April 2024, a CNBC and SurveyMonkey poll reported that 65% of Americans live paycheck to paycheck. In August 2024, a Bankrate survey found that one in three workers are living paycheck to paycheck. 59% are uncomfortable with their level of emergency savings. Of those who carry credit card debt, 67% are trying to maximize their card rewards. The exact number of people living paycheck to paycheck is difficult to determine. Suffice it to say, many — far too many — are experiencing financial pain.

“For Americans, it likely feels akin to walking a tightrope with no safety net, where the balance between expenses and earnings becomes a delicate dance.”
– Sarah Foster, Bankrate Economic Analyst

God’s money managers

This kind of financial strain is not the way God created us to live. When you count down the days until your next payday, feeling anxious every time you buy groceries or pay your bills, you are letting money control you. It is crucial that you retrain your mind to see yourself as a manager, not the owner, of all that you have.

Imagine hiring someone to manage your finances. What would you look for? What kind of habits or characteristics would you desire to find? If someone were to be solely responsible for every cent spent, what questions would you ask them in an interview? Would you hire someone to handle money the way you do? Personally, I would be pretty frustrated if the person I hired to manage the money I earned could not make it last through the end of the month. If he or she depended on my credit card for daily expenses, I think I would find a new manager!

This is how we should see ourselves every day — as managers hired by God and responsible for the time, talents, and treasures He gives us. Our resources here on Earth are not for us to squander away or use simply for our own benefit. Yes, we must take care of our needs and lovingly support our families, but we do not take a house, clothing, or cars with us to Heaven.

Instead of building our own kingdom on Earth, God said to view money as a resource to build His Kingdom. Use the money He provides for things of eternal value, not just earthly value.

Whether you earn $10,000, $100,000, or $1,000,000 a year does not matter to God if gained in a righteous manner. What matters is how faithfully you manage what He provides.

Change your mind and habits

When you receive a paycheck, give to God first, pay yourself second (save), and then pay everyone else (spend); eventually, multiply (invest) the surplus. If you commit to getting your priorities in order, you will soon develop healthy habits. Do not despise new beginnings. Do not worry about starting small. Just start!

God will see your efforts and the sacrifices you make. For money to last beyond your paycheck, you will have to either increase your income or decrease your spending. A combination of these two could provide temporary relief.

Here are a few ways to make that happen:

• Track your expenses, and build a budget.
• Ask a trustworthy friend or mentor to hold you accountable with your budget.
• Take on a part-time job or ask for a raise.
• Sell what you do not need.
• Consider moving to reduce housing costs.
• Consider selling a financed car and pay cash for a dependable used one.
• Reschedule the timing of certain bills.
• Negotiate certain bills or look for cheaper providers.
• Drop streaming services and social media.
• Meal plan, buy groceries, and cook from home.
• Find joy in no-cost entertainment.
• Pay off your highest-interest debt first, and avoid penalties/late fees.
• Apply a tax refund, inheritance, or bonus to savings and debt.
• Fast and pray for God to meet your needs.

Becoming financially literate will increase your confidence in managing money wisely. Crown offers online courses and budget coaches. Do not suffer alone; we are here to help. Blessings to you, your wife, and your child.

A trusted partner of Crown is Christian Credit Counselors. They are a valuable resource to help consolidate debt and get on the road to financial freedom.