With any complicated problem in life, there's more than one way to finding a solution. Right now in America there is a high percentage of the population (around 70% in most surveys) who state they live paycheck to paycheck. No one enjoys being in that position, and there are hundreds of financial books and articles out there on the topic. A lot of them are helpful, but I think too much of the focus has been on treating the symptoms of the problem instead of combating the sources of it.

I definitely have nothing against stretching your income to its fullest ability. You can do things like save coupons for groceries and restaurants, buy used items on-line and in thrift stores, and buy your gas in the early mornings and late evenings to get more for your money. The problem is if you're not paying attention to your overall spending habits, the money you'll save will just go out somewhere else.

It takes a little more work, but getting yourself on a practical budget will help stretch your income more than anything. (If you don't know where to start, there's a financial counselor named Dave Ramsey who has a lot of free resources on his website. The address is http://www.daveramsey.com and just type "budget" in the site's search box.)

Some people get to the point however where they've seemed to have stretched their dollars to the max, and they still feel trapped. They work really hard, and it seems like things get harder and harder each year to keep up with nearly the same expenses. What was going on was not a spending problem but an income problem. No matter how far you stretch your income, you need some sort of long-term plan to increase it over time as well. Otherwise inflation will catch up to you even if you're doing fine right now.

In today's work environment, you're generally better off if you can have more than one income source. Most of us aren't taught this in school, which is why I think sometimes people don't consider it. Doing this will not only give you more income to work with, but you'll have a financial safety net if you're ever caught in a layoff or some other unexpected situation. Just give some thought of things you enjoy doing that can be turned into a source of income. Even if it takes you several years to pursue a few good ideas on the side, it's worth it.

How to Break the Cycle Long-Term

If you want out of the paycheck to paycheck situation long-term, there are two main actions you can take to get yourself off to a good start. One is to spend some time in the business and personal finance section of your local library or bookstore. (Before any groaning about reading, ask yourself if staying where you're at financially is worth it?)

Don't just read one or two books, but as many as you can handle. People have different philosophies on money, but eventually you'll get the "big picture" about how money really works that you'll know how to control it. My personal favorite authors on this topic include Robert Kiyosaki, Dave Ramsey, and Napoleon Hill.

The second is actually talk with some of those "evil rich people" we keep hearing about from politicians and the media. You'll find the biggest majority are actually normal and good-hearted people who just figured out how money works. Even when I was a kid and living close to the poverty level, I found it really dumb to blame the happiness and success of other people for my circumstances in life. Making friends with people who had more money than me gave me a drive to succeed myself.

My life didn't change overnight, but gets better each day the more that I've learned. My husband and I are out of the paycheck to paycheck cycle, and the five years of focused work and effort have paid off. The way I see it, you can either make excuses or make a decision to change. It's your choice, but I can tell you it's better to take action than to live your whole life in a "barely getting by" state of mind. It's hard, but changing your attitude about this issue is worth it.