November 3rd, 2008 4:25 PM

The numbers are in

Two recently published surveys indicate that a large number of American workers are living the paycheck-to-paycheck lifestyle. More than 70 percent of the respondents in the National Payroll Week's 2008 "Getting Paid in America" survey indicated that it would be 'somewhat difficult' or 'very difficult' to get by if their paycheck were delayed for one week. Similarly, a CareerBuilder.com survey revealed that 47 percent of Americans are on a paycheck-to-paycheck schedule.

Characteristics of paycheck-to-paycheck living include:

• No emergency cash fund

• Using credit cards to cover unexpected expenses

• Spending every dime of one paycheck before receiving the next one

• Putting off paying bills until the next paycheck arrives

This lifestyle doesn't leave you any breathing room for unexpected expenses. If a car accident or legal problem taps out your available credit, you may have trouble paying for essentials, like food and gas.

Getting out of the maze

Breaking out of the paycheck-to-paycheck lifestyle requires commitment on your part. You have to be willing to stick with a more frugal financial program for the long haul, even if you can only increase your savings by $10 or $20 a month. And if you have debt, you'll have to find a way to pay it off.

There are only two ways to make a positive change in your financial situation: earn more, or spend less. In some situations, it might make sense to hold down two jobs temporarily. Look for a second job that's ultra flexible, such as blogging for cash, or selling your old toys on eBay. Send every penny you earn to your credit accounts first, and to your savings account second.

You can spend less by doing without the things you don't need. For example, you don't need to go to the movies every Friday night. And you don't need to have unlimited voice and messaging on your cell phone, plus call waiting and caller ID on your home phone. In addition, you might want to replace that gym membership with a good pair of running shoes.

Another tactic is to have money transferred automatically from your checking account to your savings account. Ask your bank if you can schedule the transfers to occur the same day your paycheck arrives.

Finally, if you get a raise at work, send the extra cash to your savings account. You can wait until your next raise to increase your standard of living.

You can't keep feeling like a lab rat forever. It's time to get frugal and start saving your money.

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