Living Paycheck to Paycheck? Why You Need To Stop This Habit

Some Singaporeans think that individuals who have difficulties making savings each month are low-income earners. They believe that these people do not have room to cushion their expenditures. But is this true? Unfortunately, as per Credit Counselling Singapore, this is rather not the case.

Nowadays, most young employed Singaporeans find themselves dealing with accrued personal loan debt with moneylenders almost every month.

Does this have any impacts?

Certainly, this will erode their capability to save money. Others will argue that it is fine because they are only eating into their monthly wages and nothing beyond that and thus that they are financially secure.

How then can you avoid living paycheck to paycheck? Here is a look at several things you will need to consider which could change your view around living paycheck to paycheck.

Let’s jump right to it!

Lack of Discipline in Planning Your Expenditure and Savings

Regarding budgeting, a good financial adviser will argue that planning your expenditure is equally as essential as budgeting for the amount you would like to save. Why is this important? Just like saving, spending is a discipline, and cultivating the discipline and rhythm early in your work-life can put you in good standing during your retirement.

Have you ever asked yourself why CPF is given on a monthly basis and only upon retirement? Well, when you consider the spending habits of some Singaporeans, you will probably understand why. You definitely do not want to blow all the retirement savings in a single sitting and end up in an uncertain predicament when you no longer have a job.

What’s the best thing for me to do to avoid this?

Being concerned about not having control of your spending, is fine. Of importance is that you recognize this and take measures to avoid potential problems, rather than ignoring them.

  • How Can You Secure Your Retirement?

To help secure your retirement, you could consider choosing insurance plans that plan their payouts on a monthly basis once you reach retirement. Is this good for me? This can benefit you as it helps supplement the retirement income. Some plans are designed to offer you regular payouts upon retirement. This also ensures there is a constant salary for your loved ones should you pass on.

Are the insurance plans what I need? Such insurance plans will help you have some insurance coverage and also ensure you stay disciplined during those years that you are no longer making a regular salary.

Added Pressure On You Job Security

One thing that many people do not realize is that to be able to live paycheck to paycheck you will require to be making a paycheck first. The increased pressure on keeping your job is evidently unnecessary.

Why is this so?

This can cause you a lot of unnecessary stress, which can, in turn, impact your performance at work. Having a very narrow focus on retaining your job will sometimes impact that and, in the end, it will not allow you to have a perspective on other key opportunities.

How will stress impact your job? You certainly would not like to become too stressed about retaining your job that, you eventually wind up losing it. This could occur from many things, starting from changes in behavior, to attempting to stay off the radar or avoid learning new things and taking risks because you are too afraid to rock the boat.

  • What Can You Do?

To avoid staying set without changing your ways can in the present day be rather damaging for you. Instead, a change in perspective and thriving in your job is very important. How can you change this?

Having the basic skills to perform your duties will not be good enough to help keep your job. At present, most employers show interest in employees who are able to contribute towards the entire strategic growth of a company.

Oftentimes, this will involve having the ability to look outside your job scope and consider ways that you can benefit the whole company.

Not Having an Emergency Fund

It may come as a surprise at how many people either don’t hold emergency funds. Or they do not know why it is critical to have one.

  • Do you need an emergency fund?

Well, continue reading to learn more about this fund and its uses. Living paycheck to paycheck and even constantly relying on the next payday could mean that you possibly will not have made savings at all, not to mention being able to grow an emergency fund.

Should you take this point into consideration? You need to recognize the actual risk of living paycheck to paycheck without having a buffer is putting the little savings you hold in danger of getting wiped out unexpectedly. This could, in turn, lead to you falling into an endless pit of debt.

To get you started you can consider getting a moneylender personal loan to finance your emergency fund. Keep in mind that you make sure to repay the personal loan promptly.

  • Why Do I Need An Emergency Fund?

The importance of having an emergency fund will help meet any financial emergencies. In addition, this fund should be separated from your savings since it is meant for a different function. Do they need to be separated? Certainly, you do not want to have your savings be entirely wiped out by unexpected circumstances.

It is, for this reason, you will need an emergency fund to cover such costs. This will also ensure your savings remain intact.


Since the cost of living seems to be increasing each day, you might find that you have to stretch your resources thin. How can you manage your finances to ensure you have a buffer for the emergency situations? You could start by changing your perspective of living paycheck to paycheck.

Are there ways that will help me plan my finances?

There are resources like using a budget, setting up an emergency fund that will help you better manage and plan your finances.