Stop Living From Paycheck to Paycheck – How I Succeeded
Why is it important to stop living from paycheck to paycheck? I will tell you how I found an easy free and low cost way to increase income. With many people just getting by and in credit card debt, any financial hiccup to cash flow can be devastating. That stops now!
A simple thing you can do right now that can help
The most recent government shutdown of 2019 here in the U.S. has brought back memories of the time when I was out of work. It was just after the crash of 2008 and a business I had been with for many years started laying off people. I was one of the last to go.
If you have never experienced the uncertainty when it comes to how you are going to pay your bills like rent, mortgage, car loan, and credit cards, it can be quite stressful. Family and friends can only help but so much, and government assistance does not offer much relief.
Fortunately my parents taught me from a young age, to take the change I had left over in my pocket at the end of the day and place it in a jar. I used a large mason jar and when the coins reached the top I cashed them in. But I took the saving process one step further.
I have a personal portable fire safe in my home to keep my important documents protected. I recommend everybody should have one, as it only costs about 40 dollars. When I cash out my coins I then take the paper money and put it into the safe. I was averaging about $35.00 USD every two months.
Prior to being laid off I had been doing this saving ritual for a little more than 10 years. Once the unemployment ran out and my family and friends couldn’t financially help anymore, I started using my saved funds which amassed to roughly $2,700.00 USD.
You need to change your spending habits
Now I realize that amount of money may not seem like a lot but it was enough for me to pay two months of rent plus utilities and still have $300.00 left over. But there are going to be hard choices you will need to make to stretch your money. Choices like…
- Stop eating out and make your own meals
- Stop buying things that are solely for pleasure
- Stop the gym membership and exercise at home
- Stop driving to work and take the bus
- Stop buying your daily large (Venti) morning Starbucks coffee
Yes I know. That last one is a tough choice to give up for those of us that need that cup of coffee to get going in the morning. Maybe you could compromise and just buy that Starbucks once per week on Monday morning which will save you $24.90 per week.
All of the little things you can do to save money here and there will add up to savings you can use to stretch your money and put you on a better budget. Just that weekly savings in Starbucks coffee alone would add up to almost one hundred dollars per month.
You have to change your mindset on how you buy and save money. Pretend you make less than you do and put some extra money away in a savings account from every paycheck you get. It could only be ten or twenty dollars, but it will add up and help when help is needed.
In addition to saving my daily change in that glass jar I also did everything I listed above. This gave me enough extra money to invest in my financial future by becoming my own boss doing something that I enjoy. You can do the same. It is not as hard as you think.
Turn your hobby into a money making endeavor like I did
When you are working for someone else you do not have full control of your income. My father had his own business and he worked hard and put me and my three sisters through school. So being financially conservative I started to invest what money I could into a hobby of mine.
My hobby was collecting baseball cards and sports memorabilia, as well as diecast metal NASCAR race cars. I would buy these by the case when possible to maximize my chances of getting higher priced collectibles and then resell them on eBay for more money.
It worked! I started making good money, even more than what I was previously getting with unemployment. Though I was not losing money anymore, I wasn’t near the amount of income I made back before I was laid off. I was tired of living paycheck to paycheck.
So I further invested in free drop shipping wholesale suppliers. Now I had access to 1,000 wholesalers of products not just in my hobby but also in other niches that I enjoy. I slowly built up my income to a point of having some money left over after the bills had been paid.
I was now selling a lot on eBay, so much so that they tagged me as a Power Seller. That sounds more successful than it really is, but it was a far cry from where I was a couple of years prior. I knew if I had my own website I could make even more money. Then it happened.
Having your own website can make you wealthy
There are many Power Sellers who continue selling through their own eBay Store as well as their own ecommerce website. However when you sell on eBay you have to pay them a fee for each item you list for sale and a 10% fee on the final sale price plus shipping.
Between the fees and a monthly charge for having an eBay Store, I realized that I could save a lot of money in annoying fees by just building my own ecommerce website. But I had no knowledge in how to build my own website, so I looked for options.
I did a Google search for, how to build a website without coding, and I found a couple of options. After some research I settled on a place called Wealthy Affiliate because most of the reviews I read were from non-techie people raving about the easy website building process.
I watched a video similar to the one I have here and was quite impressed at how easy and fast it took to get a website up and running. Between that revelation and the fact that I could take 10 lessons and build a website all for free, it was a no brainer for me.
While taking those 10 free lessons and building my one free WordPress website, I learned how affiliate marketing worked. Though I was looking to build an ecommerce website, I realized that I could make even more money with an affiliate website and for less effort.
Is affiliate marketing better than drop shipping?
Even though anyone can make a lot of money doing drop shipping through their own ecommerce website, what I had learned from dozens of others is that affiliate marketing is similar and just as lucrative if not more. Let me briefly explain what I mean by that.
The favorable thing about drop shipping is that you do not have to buy, stock and ship the products to your customers. But you do have to sell, perform customer service, providing for returns, and money back. Affiliate marketing is the same but no customer services are required.
There are a few other perks to affiliate marketing over drop shipping that makes it more of a money maker for the long haul. Theses are…
- You can get an affiliate marketing website up and running quicker than an ecommerce
- You can target a specific group of people in any interest or hobby you enjoy
- Your website will become an authority in your niche over time
- When your website becomes an authority, Google will give you more exposure
- Most affiliate marketers have more than one website and multiple income streams
Whereas drop shipping requires more of a constant hands-on approach, affiliate marketing does not. Once you have set up your website and it is getting organic traffic through the Google search results, it will make money mainly on autopilot.
Another really nice aspect is that you can make your website about any kind of particular product you desire. I have a lot of different interests and I could make my website to promote products in video games, sports, photography, Star Trek, and many more.
This new approach requires you to do something you enjoy
Do you really enjoy your current job? I mean, do you get up in the morning and look forward to the daily 9 to 6 grind making money for your employer? Most people just go through the motions so they can earn that paycheck to continue to pay their bills.
But think of the fun it would be to work for yourself doing something you actually enjoy. When you can have a job like this, it makes work seem more like a hobby than a job. It is you who has total control of how much you can make. Best of all, when and where you will work.
When you have the freedom to perform your job and earn income wherever you wish, no longer do you have to worry about losing your job. No government shutdown or workforce stoppage will have a direct threat on your earned income.
The terms work at home and work from anywhere will be a reality to you. Being able to do this and to make money promoting products that you enjoy using, is a great way to make money. All you need to do to get started is setting up your FREE Wealthy Affiliate membership.
If someone told me 10 years ago that I could make thousands of dollars per month from major retailers, recommending products I enjoy to other people, I would think they were trying to scam me. But that is exactly how affiliate marketing works!
Multiple niches = multiple paychecks
There are millions of people all over the world who are earning a full-time and beyond income from the comfort of their home or public place with a wi-fi connection. When you do affiliate marketing you can have multiple websites giving you multiple ways to earn money.
Let us say that you like the outdoors or one of your favorite pastimes is kayaking and/or fishing. You could create an affiliate marketing website in the niche of Fishing Kayaks and other personal watercraft for the outdoor enthusiast.
On this particular website you could do reviews and promote various different types of kayaks, canoes, inflatable fishing boats, and other products associated with boating. You could also create an online guide of tips for fishing and offer it as a download.
Then you become a free affiliate of places that sell these products like Amazon, Walmart, Sea Eagle, and others. These companies will pay you a commission each month for every order your promotional website sends to them.
As soon as this website is getting customer traffic you could create another niche website and repeat the money making process. Perhaps it could be about the best kind of running shoes and you become an affiliate of Nike or Adidas.
How soon can you expect to make money?
Now let me be honest here. Being able to make a lot of money doing this will not happen right away. Depending on how much time you can devote to learning the correct steps to take and then implementing those steps, will determine how soon you will start making money.
Think of your financial success as a modern skyscraper office building. You cannot build that top floor without first building the foundation, then the support structure, and the building infrastructure. It could take you several months or a couple of years to finish.
The point is if you want to know how to stop living from paycheck to paycheck, you must set up another way to make money in your spare time. Affiliate marketing is the easiest way I have found to do just that and it only costs about $49.00 USD per month.
At the top of this website I have a menu category that says Money Making Ideas. When you click there you will get over a dozen different affiliate marketing niche ideas. Some of these I have linked to in this post to show you how it works.
I was able to quit my regular job after a couple of years spending a couple of hours each night after work and several hours on the weekend, learning the steps and building my business. The more time you put into it the quicker you see results.
Wealthy Affiliate University is where I and millions of others from all over the world have gotten their start. The training is very easy and many technical aspects are automated. It is designed to help the complete beginner to get started without spending a lot of money.
My #1 RECOMMENDATION for Your Success…
Remember when I said at the beginning of this post that by cutting back to only one large (Venti) Starbucks coffee per week would save about $24.90 USD? Well two weeks of savings would pay for an entire month of your Wealthy Affiliate Premium Membership.
They are the least expensive place on the internet to start your online business in any type of internet marketing. But before you decide to take out your credit card, I recommend you join Wealthy Affiliate for free and pay later.
You can do a lot as a free Starter Member. You can take the first 10 of 50 lessons, build a programmed for you WordPress website, ask questions, and learn how affiliate marketing works. Upgrade to Premium in the first 7 days and your first month is only $19.00 USD.
Once you join and set up your user account profile you will have full Premium access for 7 days. You can ask questions in Live Chat, get advice from other successful members like myself and the owners, and decide if this is right for you.
One more great aspect of Wealthy Affiliate is that you do not have to make money with affiliate marketing, you can still use WA to build an ecommerce website. Being a member is a win-win. If you have any questions now, please leave them below and I will be more than happy to reply.
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Thank you for an excellent article. When I first started reading, I thought someone had used my life as a template, just changing a few of the minor details. We all say the right things when it comes to saving money but never actually apply them until we ‘have’ to.
I left full time employment due to illness and it was a rude awakening as to how fragile our finances were. We had no help with the mortgage and had to cash in any and all of our savings, it wasn’t a great deal but it helped in the short term.
Prior to this I had never been very responsible with money. In time I have learned and can attest to your methods. I’ve always been into Sci-Fi and ‘tech’. Once we were back on our feet I would siphon away whatever I could with a little extra through Ebay. Then I would buy vintage computers or old phones. This was my ‘savings’ plan as it meant I was unable to spend the money, unwisely.
Over A few years I accumulated a small collection, all of which increased in value, not greatly but better than the return you would get in a bank savings account.
When I came across Wealthy Affiliate, I took full advantage of the startup options. It actually equates to the first five weeks for just $19, which is plenty of time to become acquainted with the platform and all of its benefits.
I knew I was onto a winner and went about selling off some of my ‘tech’ which enabled me to join as an Annual Premium member. It has been one of the best decisions I have made. The other bonus was that by joining under the annual membership, my monthly equivalent is just $29.
At that price I might be able to afford a couple of those ‘Venti’s’. One of my prized possessions that I still have is a ‘First print’ of the original ‘Star Wars’ cinema quad poster. Always wise to have something for that unexpected ‘rainy day’
Thank you for your reply and your story. I too can relate for not just selling off a collection to pay for online education but also keeping a few high-valued items for an even rainier day. I only wish I had some of the valuable baseball rookie cards and first ever Star Wars movie program I had when I was a kid, not yet understanding the value of collectibles. 🙁
If I knew when I was a kid what is the value of a Mickey Mantle rookie card, I would not have pinned it to the bicycle frame so it could make a noise flapping against the spokes of the wheels. Oh the cute things we used to do as kids. I now estimated that I ruined about $100,000.00 worth of three 1952 Topps Mickey Mantle rookie cards.
I kick myself about that now and it is why I made sure to never make a stupid mistake like that again when it comes to collectibles. Saving for that rainy day or to help finance an education in how to make money online with Wealthy Affiliate or some other way, is something everyone should do. No one knows when a financial hardship will come and being prepared is the best safety net.
Hello Robert, I’ve often had problems with work and this makes me cut down my standard of living several times. I’ve how ever gone into making researches on a work I can start doing online. And yes, I’ve heard of wealthy affiliate marketing but have often doubt if its genuine. This post have cleared my doubt’s and I’d love to give it a try
Dane, I would definitely recommend you try Wealthy Affiliate to learn how to earn money on the internet. They are a leading training platform and community, pretty much like an online university. But unlike most universities or other affiliate marketing training programs, the Wealthy Affiliate training is designed for complete beginners, only costs $49.00 per month, and is 100% FREE to start the learning and building process.
Your website is a great, very informative one, that shows the cheapest and/or most effective approaches to start up your own business which has the potential to gradually grow bigger and bigger. Also, I liked how the site helps people to figure out, how to set up not only one, but multiple income streams in terms of affiliate marketing and working at home. There are eventually more people seeking ways to make a decent living and getting away from ordinary and often- pretty boring 9-5 grinding. I´m considering to start something similar in the near future and this site definitely helps on my way.
Kind regards -Jesse
Thank you Jesse. I am happy you liked my website. I try to offer the best cost-effective ways to get people to start a second or third income stream. No one ever knows when their last day of working for someone else will be. When you are not in control, getting laid off can blindside you and force you to conserve as it did me.
I have found that affiliate marketing is the best way to earn passive income because it is very inexpensive to start and operate and you have a very wide choice of niches to select from. When a person can make money doing something they enjoy, their chances of success increase dramatically because work will not seem like work.
Hi Robert.
Thanks for the insightful post. i enjoyed reading your article. Going step by step from how you were laid off, to how you started collecting stuff and selling on ebay, how you became a power seller. To wanting to having your own website and getting wealthy affiliate!
I have a busy work schedule, but i would love to have an extra stream of income, maybe getting to go into online businesses full-time. I would like to explore the options.
Thanks again for this inspiring article. On Point!
You are welcome Mariam. If I had a chance to go back and redo everything, I would have started to build that second source of income when I still had my busy full time job. This would have greatly helped me to survive when the time came that I was laid off.
Now that I have finally dug myself out of the financial hole I was in I keep telling people DO NOT WAIT to start a second source of income, because you never know when you may lose that full-time job. Take a few hours every weekend and maybe an hour every night after work, and learn how to build your new business.
Wow! This is a really amazing post truth be told. Been able to discipline one’s self always and take right decisions even when the temptations are much and seem high is very important in human endeavours. This review is a really helpful one on not just how to spend but on how to spend and get at the same time. The first guide on how to get money when broke is one of the best my dad has always taught me. Saving up to spend and save another day. This is a really educating post that shouldnt be taken for granted because of its visible potential to add value. Kudos!
Thank you for your comment. Being able to save money even when you are broke is possible but only if you are willing to NOT spend money on things that only bring temporary pleasure. Yes food is necessary but eating out at fast food places or at a deli are not good choices. Making the food yourself is the best way to save money. There are many things people can do to save money but it requires a major shift in thinking and how one spends money.
Definitely, learning to save is an habit that we all need to master and it requires a great deal of sacrifice for us to be able to do it with discipline. Surely, trial times would come and the best way to go about it is to create a profitable passive income that would prevent living from one paycheck to another. I like affiliate marketing for the ease at which it comes with. It gives a pleasurable feeling in line with making money. Though it requires lot of patience and hardworking too but it is very lucrative
Getting on a budget will always require sacrifices and in my opinion many of those sacrifices are personal luxuries that are not needed for day-to-day survival but rather desired treats. These treats will not bring you lasting financial peace of mind. They are only temporary moments of pleasure and thus can be sacrificed.
Another sacrifice that is very rewarding for the long run is learning how to create a second source of income that is passive in nature. This can be done at the affiliate marketing training community I speak of in the blog post above. When you have a way to make money passively while you are asleep, it will greatly help you financially.
I ‘read recently that affiliate marketing is worth the effort and can provide you with a guaranteed passive income as long as you dedicate time, patience and will. I truly appreciate that you are offering us your personal experience and you point out that we will not have a profit immediately if we do so. And I believe it’s worth it. We really thank you for the advice and the honest and wonderful post.
It was my pleasure to present to you the facts. Many people will make lofty claims but forget to mention that you need to work hard at laying that foundation now so you can make good money a year or two down the road. Affiliate marketing online is truly a great opportunity and a 6 billion dollar per year industry.
I am also a premium member of wealthy affiliate and I can say that there’s nothing as good as making money from what you love doing. I joined wealthy affiliate because I was tired of my normal day job and I wanted to do things at my own time. It’s not so easy and it’s been a hard working ride for me but at the end of the day it all pays off. Just like you,I recommend wealthy affiliate to anyone who wants to kill the stress of thinking about how to make paychecks.
Thank you for your comment. When anyone can have control of their finances because of side hustle or a full-time internet business of their own, living from paycheck to paycheck becomes a thing of the past. The training and education provided by Wealthy Affiliate is not only university quality but it is very inexpensive. No student loan debt required here.
Great tips for making that paycheck last longer! I’ve been there myself. It’s tough to give up on the things you like but can’t afford but that’s life. Fortunately, I’ve had the luxury in recent years of having enough income to not sweat about where I buy my coffee or what I eat. Unfortunately this is because of a job I don’t really like and quite frankly I’m ready to change some of that income for freedom.
I definitely love the idea of affiliate marketing because the lack of actual work involved after the purchase is made. I’ve never been interested in creating a brick and mortar business or a drop shipping service because of the customer service, inventory and everything else associated with running a typical business.
Affiliate marketing and selling digital products gives you so much freedom. All you have to focus on is getting your offers in front of buying customers and convince them to take the deal. Of course that’s easier said than done but I’m willing to go the extra mile to avoid all the hassle with typical business. Great tips btw! My plan is to spread out my income to several sites once I get the first one making consistent income.
Thank you Chuck for your reply. It really can be tough to give up some of the nonessential luxuries many of us enjoy if we are living paycheck to paycheck. But without drastic measures, one can find themselves in a worse position, like being evicted or having assets taken away by creditors. Those same weekly luxuries will still be available once we get back on our feet financially.
I do agree that affiliate marketing is better than drop shipping for the same reasons you have listed above. In between doing drop shipping on eBay and now having an affiliate marketing website business, I had thought of starting an e-commerce website to drop ship from. But once I learned the simplicity of affiliate marketing, I am in no hurry to create that e-commerce website.
Great post, I always worry about not doing all I can to make a decent living and get away from the traditional 9-5. I’ve recently learnt affiliate marketing is a popular way to go about it. Really inspiring, good job!
I think we all worry that we are not doing enough to make enough money to get away from the 9-5 grind. But I will say this, it requires a lot of effort and sacrifice, especially when first starting out, to build yourself an internet business to the point where it becomes profitable. If you keep at it and don’t quit, the money making process will get easier and easier. It just needs time to get rolling.
A fantastic well-written post with very good insights. I myself tried Drop shipping back in the late 90’s but it was difficult to ascertain the quality of the goods without ordering and checking them first. I couldn’t grasp the idea of an Ebay store, so I never even tried that. Affiliate Marketing, I found was the most suitable for me and especially when doing it right, certainly with Wealthy Affiliate, you are shown and taught the best way that really works without paying an arm and a leg. Thanks for this insightful post.
You are welcome Kimberleigh. Happy you liked my post. Drop shipping when done right, meaning finding wholesale drop shippers that accurately describe their products, can be a profitable way to go. But my problem was making sure there was enough products in stock to support my listings.
Whereas affiliate marketing I do not have to worry about the customer purchase side of things. All I do now is recommend a product and direct my reader to the source where they can purchase it. If the item should be out of stock the store I sent them to would inform them of their options.
Dear Robert
Thank you very much for your fantastic website that shows the cheapest and most effective approach to start up your own business which can grow gradually.
Kind regards,
Andrey
You are welcome Andrey. Starting an online business does not have to be as expensive or as hard as many people believe. In this day and age, creating your own business on the internet is quite simple and low cost.
The only big investment is in the time it will take you to build everything from scratch. But when you enjoy what you do it will be a fun building process.