More than 57% of American adults live paycheck to paycheck, according to MarketWatch Guides. This financial stress can lead to debt accumulation from unplanned expenses. Budgeting is key to tracking and cutting expenses. 40% of Americans don’t budget. Building savings and having an emergency fund can break the cycle.

Laura’s story highlights the struggle of living paycheck to paycheck after a divorce. Taking steps like budgeting, reducing expenses, and earning extra income through a side hustle can lead to financial stability. The Federal Reserve reports that 37% of U.S. adults lack funds for a $400 emergency.

Debt can hinder financial progress, with the average U.S. household carrying around $6,065 in credit card debt. Paying down debt, building savings, and increasing income through a side hustle can help break the cycle. Planning for retirement is essential, with many Americans relying solely on Social Security income in retirement.

Creating a budget, reducing unnecessary expenses, and increasing income through a side hustle can help break the paycheck-to-paycheck cycle. Allocating funds to retirement accounts like a 401(k) or IRA is crucial for long-term financial security. Automatic transfers to retirement accounts can simplify the savings process.

Read more at Yahoo Finance: I’m 49 and tired of living paycheck to paycheck. How to break the cycle of financial struggle before it’s too late