How Can I Stop Living Paycheck to Paycheck?

How Can I Stop Living Paycheck to Paycheck?
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Carrie Schwab-Pomerantz
Updated:

Dear Carrie: I’m a single mom with a decent income, but I’m always living paycheck to paycheck. How can I break that cycle and start to save, not only for an emergency but also for my bigger goals like retirement and maybe even a home?—A Reader

Dear Reader: Living paycheck to paycheck isn’t uncommon these days. Recent studies suggest many Americans are doing just that, which makes it next to impossible to save and invest. Overspending can be part of the problem, but even more often, people get squeezed through no fault of their own—low wages, unpredictable income, and high costs for essentials like childcare, health care, housing, and college. On the other hand, even people with high incomes can find themselves caught in a seemingly never-ending cycle.

Carrie Schwab-Pomerantz
Carrie Schwab-Pomerantz
Author
Carrie Schwab-Pomerantz, a certified financial planner, is president of the Charles Schwab Foundation and author of "The Charles Schwab Guide to Finances After Fifty."
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