Paycheck to Paycheck Living During a Recession

One of the many problems with living paycheck to paycheck, is that should something happen such as a car breaking down, or the need to go to the doctor, that could send an individual into a downward spiral that may eventually lead to being unable to make the mortgage payment.  Should this repeated happen one will end up in default on their loan.  And current status of the economy is providing evidence of just that, as there continues to be a raise in foreclosures.  Toronto , residents are experiencing, as well as the rest of the country, and it has become a national crisis in the United States as well.

moneyA study done by Career Builders has revealed that in the United States, the current percentage of citizens that are living this way, from one check to the next, is just about fifty percent.  And less and less workers are finding themselves able to deposit any money into a saving account.  They are living lives without a safety net.  One solution most people say, is to get a pay raise.  For many questioned about it, just five hundred extra dollars each month would set them at ease.

One way people may attempt to manage their situations is by seriously keeping track of monthly expenses .  After totaling up the essentials such as rent or a mortgage payment, take note of just how much one spends on going out for coffee, or spending the afternoon at the movies.  And even though it is tough to turn down a job offer in this current climate, one really needs to look at the pay rate, and compare to how much they need, not only to pay the bills, but the necessities of each and every day.  By taking an active role in the end of the check to check way of life, one will see results.

article provided by Elyse Thoms, a financial writer whose writing appears on blogs and money management sites

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