Over one-third of Americans (34%) currently live paycheck to paycheck, with 18% having no savings, according to a GOBankingRates survey. Self-made millionaire Bernadette Joy suggests creating a cash flow cushion by keeping one month’s worth of expenses in your checking account to break free from the cycle.

Joy recommends maintaining this cushion to prevent overdraft fees and make financial decisions confidently. While some experts suggest having 3-6 months’ worth of essential expenses saved in an emergency fund, Joy believes a smaller cash cushion can help you escape living month to month and focus on other financial goals.

To calculate your cash flow cushion, determine the amount needed to cover rent, utilities, food, transportation, and essential health expenses for one month. Joy advises adjusting your budget to prioritize saving for this cushion and maintaining it to avoid financial stress.

Surveying 1,006 Americans, GOBankingRates found insights on banking habits, savings goals, and financial outlook. The survey conducted in December 2024 covered various topics such as preferred banking methods, savings account balances, satisfaction with banks, and concerns about the banking system’s fairness.

For more financial tips and advice, visit GOBankingRates.com. Explore articles on budgeting, savings, and strategies to improve your financial situation. Learn how to stop living paycheck to paycheck and build a more secure financial future with expert insights and guidance.

Read more at Yahoo Finance: Do This 1 Thing To Stop Living Paycheck to Paycheck