Mid-30s and Living Pay Check to Pay Check?

You’re well into your 30s now but you haven’t been doing as well financially as you always thought you would be at this stage in the game. You’re not alone. According to CBS News, 38 million families in this country live paycheck to paycheck, or about a third of all households. You may picture minimum-wage workers in your mind struggling to pay the bills each month but the truth is, two-third of those households living hand to mouth are actually middle class people with nice homes and retirement accounts.

Illiquid Assets

Experts believe these people are opting to add money to what’s called “illiquid assets” such as retirement portfolios that offer a high return over a simple savings account. There are many incentives to this practice, such as tax-deferred contributions. That said, it’s generally recommended that families put away between three to six months of income in order to cover any emergencies that may crop up, such as a health issue. On top of that, saving regularly for retirement is a must. OK, so how do you break out of the paycheck to paycheck lifestyle to sock away more money for your golden years?

Establish Solid Saving Habits

Part of the problem is that you’re likely spending just within your means – maybe a bit outside of your means if you have credit card debt. The key is to spend just under your means so that you can make up the difference with saving. Establishing good financial habits now will serve you well for the rest of your life if you max out your retirement savings accounts and set aside funds from an extra side job, advises US News and World Report. By extra side job, we mean setting aside a portion of income you’re getting from something other than your main job. That leads us to…

Generate Extra Revenue Stream

If you have a killer idea but no funds to back it, turn to sites like Kickstarter and get your friends and family to help you out. This website assists artists, musicians, filmmakers, designers, and other creators in identifying the resources they need to make their dreams come true. This is especially great for creative people who want to get a particular project off the ground. The Kickstarter community is where you can find support, both collaboratively and financially. Another way to raise money is to sign up on airbnb.com. Got an extra room or addition you can rent out to travelers? You benefit from the extra income and they get an affordable place to stay that doesn’t have the sterility of a hotel room.

Create a Website

Take the concept of extra income a step further and develop your own website on the cheap. You can do this on Shopify for $29/mo., which includes credit card processing. Learn more at https://www.shopify.com/pricing. There are lots of plans you can select from to suit your needs and budget. There’s also MagentoGo, BigCommerce and WordPress where you can make and sell your own goods, or someone else’s.

Investing in the stock market is a no-brainer. It sounds more complicated and expensive than it is. But for very low input on a safe bet, you can realize solid returns by retirement. Let a stock broker or financial planner guide you in this process. Just be sure to keep the info of a securities attorney handy. Here at Thomas Law Group, we specialize in recovering losses for investors. If you require our services, call us at at 800-797-9888 now.