Episode Transcript
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Laura (00:02):
hello and welcome to
money and career mastery from
overwhelmed to ownership.
I'm Laura Sexton, your abundanceand legacy coach here to help
you navigate the world of money,debt payoff, and career growth
with confidence and clarity.
In this podcast, we'll tacklethe financial and career
challenges, holding you back,optimize your income and build
(00:22):
the freedom that comes with trueownership.
If you're ready to break freefrom overwhelm, create a budget
that aligns with your values anddesign a legacy that empowers
future generations.
You're in the right place.
Hello, accelerators.
I am so excited to be talking toyou today about how to break the
paycheck to paycheck cycle.
(00:44):
This is a stressful andfrustrating way to live.
And trust me, I know because Ilived it for a Decade sometimes
when you're in the middle ofthat paycheck to paycheck cycle,
the only thing you want to do isjust go out and spend money and
it just exasperates the problem.
(01:05):
You guys, please reach out to meif you can relate to that
because I want to know that I'mnot alone out there.
When I was living paycheck topaycheck, I was working in
Hollywood and I was working asan actress and some days I was
just so frustrated with myfinancial situation that I was
like, I'm just going to go outto eat with my friends and I'll
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put it on a credit card becauseI don't care right now.
Now, of course, this came backto bite me frequently, and it
just made the problem worse.
So instead of making the problemworse, I want to help you get
out of that cycle.
Let's stop living in the ick,and let's start thriving.
(01:46):
Paycheck to paycheck issomething that a lot of
Americans Can relate to 40percent of Americans say they
struggle financially.
I just read a statistic inbetterment.
com.
It's their annual report.
And they said 89 percent ofemployees experience anxiety
about day to day finances.
(02:07):
That number is way too high.
And let me tell you, it is notjust normal employees that are
on the average income scale ofsixty to a hundred thousand
dollars.
No, I have clients that make twohundred and fifty thousand
dollars.
A year that are still livingpaycheck to paycheck because
they allow themselves to growbeyond their means.
(02:28):
They allow themselves to letlifestyle creep happen.
But what we need to do is weneed to bring it back to
reality.
Start living below our means.
And that's what this podcastaims to do today.
Today I'm going to give you acomprehensive plan to break free
from the cycle.
Let's escape this paycheck topaycheck cycle.
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I don't want you living in thisanymore.
So the first thing we're goingto have to do you're going to
have to decide.
You have to decide that youdon't want to live this way
anymore.
When I look back on my story,the day that I decided I wasn't
living this way anymore is theday that my life changed.
It wasn't when I finalized mylast payment.
(03:09):
It was when I chose to not livethis way anymore.
Let today be that day for you.
Decide that you don't want tolive in the paycheck to paycheck
cycle.
And then come along this ridewith me as we break you out of
it.
So now that you've decided thatyou aren't going to live this
way anymore.
Your next big mindset shift isto understand your why you have
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to connect your goals, yourfinancial freedom, security for
your family, your desire totravel, whatever it is, you have
to connect that goal to what youvalue.
Now, this can be a littledifficult to think about on the
first level.
If somebody says, well, why doyou want to get out of debt?
Your answer could be I'm tiredof living paycheck to paycheck.
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That's great.
Why are you tired of livingpaycheck to paycheck?
Your reasoning it's personalfinance, right?
It's a hundred percent personal.
So why are you tired of livingpaycheck to paycheck?
Maybe you're tired of waking upin the middle of the night
sweating because you're stressedabout money Maybe you're tired
of having to work so that youcan pay somebody else.
(04:13):
Maybe you're tired.
Like what are you tired of?
What are you sick of?
What are you done with?
And then let's go down the whyrabbit hole I say, why do you
want to get out of debt?
And you say, I want to stopliving paycheck to paycheck.
And I say, why?
And you say, I'm tired of wakingup in the middle of the night.
And I say, why?
And you say, because I wouldreally like to sleep better.
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And I say, why?
And you say, because when I'mtired and cranky, I'm not a good
spouse or parent.
And I say, well, why does thatmatter?
And you say, because my ultimategoal is to teach my children how
to behave and how to be a goodwhole adult.
It's a pretty big why isbreaking the paycheck to
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paycheck cycle, something youwant to do because you want to
help your children have a betterlife?
Buying them things and givingthem every experience they ever
asked for.
That's not helping them become abetter human.
teaching them to connect withtheir values and their why, that
is a much better investment.
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So you've decided you're goingto make a change.
You understand why you want tomake a change.
Now you have to let go of anylimiting beliefs that you have.
Things like people like medon't.
The little man can't get ahead.
Any of these negative thoughtsthat come in your mind, I don't
make enough to.
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They're all lies.
It's not true.
People like you get ahead allthe time.
Now, if you are living in asituation where everybody around
you tells you, no, you'll nevermake it, you'll never make it.
You need to get out of that crabbucket.
I don't know if you guys knowthis, but if there's a bucket
full of crabs and one of themstarts to get out, all the other
(06:03):
crabs will grab them and pullthem back down.
Look at the people around you.
Are they lifting you up or arethey pulling you back down?
So what are the practical stepsto escape the cycle?
Well, the first one, and youknow what I'm gonna say, because
it's a my favorite.
Creating a realistic budget.
Focus in on simplicity and theessentials.
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Make sure that you have yourfood, that's groceries, shelter,
transportation, and utilitiescovered.
Once those are done, everythingelse underneath that is a nice
to have.
Necessities are covered.
Then the things that are thehighest on your family values.
You can have two to three here.
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Then the debt payments.
And then everything else.
It's Netflix.
It's anything extra.
Now, when we're talking aboutthose family values, those
essentials for your family, Formy family, it's two things.
My kids are in private school,they're in a private Christian
school right now, and my husbandhas to be able to go to the gym.
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Those are two things.
He needs that for his mentalhealth.
That's fine.
So for our family values, thoseare non negotiables.
Those are in our budget and theycome first.
After that, we make sure debt'spaid off and then you put in the
nice to haves and the thingslike that that are not required,
but that we want to make surethat we are taking care of.
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Now, if you're paying debt downaggressively, Then we're not
going to have a whole lot ofnice to haves in our budget.
We're just not.
You also want to make sure thatyou have at least a starter
emergency fund of 1, 000.
This is to create a safety netfor unexpected expenses.
Most unexpected expenses aregoing to be under 1, 000.
If it's over 1, 000, we're goingto have to adjust our plan and
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that's okay.
We can either cut back on ourextra debt or we can sell
something around the house.
We can make sure that emergencygets covered.
Without having to go backwardsinto more debt, we are trying to
be strategic here.
Once you have the budget and thestarter emergency fund, you want
to make sure that you aretracking your spending.
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So you need to be tracking everyexpense for 30 to 90 days to
gain actual clarity on where itis you're spending your money.
Because it's one thing to make abudget and say, well, this is
totally realistic.
I was listening to a podcastrecently where a lady had
forgotten in her budget thattithing was something that they
do.
Tithing is just part of hernatural rhythm and she didn't
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even think about it when she wascreating her budget, but that's
10 percent of your paycheck.
We got to put that in there.
So let's.
Look at what we're actuallyspending.
Not, I think I spend 100 a monthon restaurants and then you go
back and you look at what you'veactually spent over the last
three to six months and yourealize, no, it was closer to 1,
200 a month.
(08:55):
Yeah, that was me when Istarted, by the way.
So I would like for you tocommit to 30 to 90 days of
tracking every single expense.
If that gets really annoying foryou, I suggest using your debit
card a lot less, spending lessmoney, and then you have less to
track, and it's a win win.
(09:18):
Identify anything not essential.
And redirect that money towardsyour savings or your debt
payoff.
I promise this is going to beincredibly important because
once you're not making debtpayments, that's extra money in
your budget that you get to puttowards the things you value as
opposed to paying for pastdecisions.
(09:39):
So I really want you to create aconsistent habit of Paying
attention to where your spendingis going.
But for right now, why don't yougo ahead and pair this new
financial habit with an existingroutine.
James Clear, the author ofAtomic Habits, calls this habit
stacking.
So Let's say you have coffeeevery morning.
(09:59):
Well, when you sit down to yourcoffee, just go ahead and track
your expenses, especially ifyou're using something like
EveryDollar or YNAB or Monarch.
Then, you need to schedule aweekly check in to evaluate your
progress and adjust your budgetas needed.
If you are married, you do thiswith your spouse.
If you are not married, you needan accountability partner.
And if that needs to be me, I'mvery happy to let it be me.
(10:22):
I can come up with many storiesof clients that I have worked
with that have stopped livingpaycheck to paycheck and started
living abundantly.
But I'm thinking of one couplein particular right now.
He is a firefighter.
And so, you know, he has beenvery busy out here in California
and they've been dealing withall of these crazy, insane
wildfires.
(10:42):
And you know what he doesn'thave to worry about when he's
fighting the fires?
If something happens to me, ismy family going to be taken care
of?
If he got to a place where hewasn't working at all?
Something happened to him whilehe was working.
He had to be off the job for sixmonths.
Would his family be taken careof?
Yes, absolutely, they wouldbecause they no longer owe
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anything to anyone.
They're not in the paycheck topaycheck cycle.
Every time he gets a paycheck,his money goes towards savings,
his money goes towardsinvesting, his money goes
towards things that they value.
And the things that they want tospend their money on instead of
going to debt payments.
Focusing in on these practicalsteps, they achieved their debt
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free desire.
So now, Accelerators, I'm goingto just encourage you to track
your expenses for 30 days andcommit to one small change.
If you were like, I know I wantto break the paycheck to
paycheck cycle, but I can't getpast these limiting beliefs.
I can't get past the fact thatI've never learned this and I
(11:49):
should know it and the negativetalk.
If there's any negative talk inyour mind.
About finances.
Let's have a conversation.
If you were desperate forfinancial freedom and security
for your family, let's have aconversation.
Scroll down in the show notesand click on the money mastery
program button and it willschedule a time for us to talk.
Send me an email.
(12:09):
Laura at accelerate your legacy.
Send me a DM on Instagram ataccelerate your legacy.
Let's have a conversationbecause I promise you, you can
escape this paycheck to paycheckcycle.
And if you've never made abudget before and you're looking
for a realistic budget, theeasiest way to do this is by
jumping over to my website,accelerateyourlegacy.
(12:31):
com slash resources and clickingon the better budget bootcamp
button.
If you will give me just 15minutes a day for five days, I
promise that you will have abudget that is based on your
family's value and will help youget to your desired future we're
going to stop living in scarcityand start living in abundance.
(12:53):
Oh, friends, Accelerators, I'mso thankful that you took the
time to listen to this storytoday, and hopefully it helps
you feel encouraged and inspiredto leave the paycheck to
paycheck cycle and startthriving in the way that you
value most.
All right, Accelerators, go out,make a difference.
(13:18):
thank you for spending time withus today on Money and Career
Mastery from Overwhelm toOwnership.
Remember, your legacy isn't justabout financial freedom.
It's about living with purpose,taking action, and building a
foundation that lasts forgenerations.
Don't just listen, implementwhat you've learned and share it
with someone who could use afinancial or career
breakthrough.
(13:38):
If you found value in today'sepisode, help us grow by rating,
reviewing, and sharing thepodcast.
I'll be back next week with morestrategies to help you master
your money and career.
Until then take ownership ofyour future and build your
legacy with intention.