Living paycheck to paycheck can feel like sprinting on a treadmill — and never stopping. Those living paycheck to paycheck can work all day, every day, and not have a lot to show for it at the end of each month.
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Does it make sense to hire a financial expert to help break the cycle? For some it does. Consider the following options for getting help breaking out of the paycheck-to-paycheck cycle.
It’s hard to wrap your head around the idea of spending money in order to spend less money. Fortunately, there are multiple options, at different price points and pay structures.
“There are money coaches, financial therapists and certified financial planners (CFPs),” explained Deborah Johnson Miranda, coach and founder of Bee Money Coaching. “Any of these people can help you stop the paycheck-to-paycheck cycle, but their levels of education, experience and licensing will determine how much you pay for their services.”
Coaches tend to offer the lowest pricing and may charge by the hour or for a package with a set number of sessions. They aren’t licensed by the Securities and Exchange Commission and can’t offer investment advice.
Financial therapists typically charge by the hour, as do some CFPs. Some people living paycheck to paycheck may need help with budgeting and behavior — their day-to-day living habits. Those looking for help should reach out to as many different experts as they can, compare their pricing and most of all get a sense for their results in helping clients change their spending behavior.
No matter which type of expert one hires, they should plan to spend a few hundred dollars per hour of their time.
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Before spending money on an expert, consider trying a free alternative. But set a deadline for seeing results, and if tangible results aren’t seen in that time frame, consider getting expert help.
Self-education and designing a new budget from scratch are good places to begin. Start by reading as much as you possibly can about both budgeting and ways to change spending habits.
“I have found that 99 times out of 100, if someone has no money left over at the end of each month, they are living above their means,” said Lucas Barcelo, finance and insurance expert at Thrivin Life. “Start by cutting out the seemingly small expenses, then look at reducing structural expenses like housing.”
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