I live PayCheck to PayCheck

cash I live PayCheck to PayCheckJust like the title of this post states. “I live PayCheck to PayCheck”. When most people hear that statement, they think the person is bad with money and or that person has trouble paying their bills.

This is not the case with me and I am sure other people who do the same as me. As soon as I get paid from my full-time job, I deposit that money right into my Scottrade Brokerage account. Once it clears Scottrade, I make my buys right away. I go back to my Stock Considerations List. This list helps me with my buys for the month that way I am ready to go.

As you see from this picture, I currently only have $1,041.60 in cash. It is split into two accounts. One is my checking account and the other is my saving account. I use Personal Capital to track this. If you are not tracking your income or expenses, you are doing a disservice to yourself. You can sign up to Personal Capital for Free and the service is free: Personal Capital Free Sign Up

One of the reasons why I do this is because money works harder than I can ever work. If you use money as a tool, it can work 24 hours a day 365 days of the year. We as a human can not work that hard and for that long. We need to sleep. We need to eat. We spend time on things sometimes that don’t make money at all. For example, last month I made over $1000 is passive income. This month it will be a lot more, so I am excited to see how much I bring this month.

The second reason I have so little in cash is that I use my credit card for all my purchases. No, I do not have thousands of dollars of credit card debt. I actually pay off my credit card statement every month. I use my credit card for all my purchases because this allows me to get points to pay for my travel expenses. I will write a post down the road that explains how this worked for me and why you should do the same.

So as you can see, I live PayCheck to Paycheck. The second that I receive money I put it right to work. This method has helped me for the past 5-6 years and I will continue with the method.

Thanks for reading, and don’t forget to follow me:

feedly-follow-rectangle-flat-small_2x I live PayCheck to PayCheck      

Do you live paycheck to paycheck? or do you keep a nice size amount of cash?

Comments

  1. Hi I am a brand new reader here, and I’m intrigued with your strategy. Are you immediately investing 100% (more or less) of your take-home income? With “only” $1000 of passive income, presuming you cash this out, how do you make up the shortfall to pay your rent/mortgage, credit card bills, etc. if everything else is invested?

    • Hi Dani,

      Thanks for stopping by and for the question. It is not 100% as I leave some left over to pay my mortgage and other expenses, but I am left after all that is what you see in the picture which about $1000 every month. Sometimes it’s even less than $1000. The passive income I use to buy more shares of a company that I find undervalued at the time.

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