Change your financial mindset to escape living paycheck to paycheck
Olha Kovalchuk told how to change financial thinking and money management skills (photo: freepik.com)
Many Ukrainians today find themselves in a situation where their money lasts only until the next paycheck, and any unexpected expenses become a serious challenge. It seems there is no way out, as salaries are limited while costs continue to rise. However, the problem does not always lie in income levels. Often, financial difficulties are caused by habits and incorrect mindsets regarding money.
Financial literacy expert Olha Kovalchuk told RBC-Ukraine how to change one's financial approaches and consciously manage personal finances.
Form a new financial environment
The people you interact with influence your financial habits far more than you might realize. If everyone in your social circle lives in debt, spends everything down to the last penny, and doesn't think about the future, this behavior pattern becomes your norm.
On the other hand, if you surround yourself with individuals who know how to save, invest, and manage their money wisely, your mindset will gradually change. It’s beneficial to engage more with those who have a healthy financial outlook, read about finances, are interested in investments, and maintain a budget.
Think in terms of "assets" and "liabilities"
One of the key principles of financial literacy is understanding the difference between assets and liabilities. Assets are what generate income: rental properties, businesses, investments, and savings.
Liabilities are what take money away: loans, instalment plans, and expensive items that do not provide long-term benefits. Before making a purchase, ask yourself: is this an investment that will bring returns, or is it just another expense?
Look for more earning opportunities
Even if you have a stable job, it doesn’t mean that other sources of income are unavailable. It's worth analyzing your skills and opportunities: perhaps you have a hobby that can be monetized, or you can find additional side work. The world has changed, and many people now earn extra income in their free time through freelancing, investing, or developing their own projects.
Invest in yourself and your financial literacy
To start earning more and making sound financial decisions, continuous learning is essential. Read books on financial literacy, attend courses, and explore the success stories of others. Education is the best investment that pays off in the form of increased income and financial independence.
Change your attitude toward money
Many people associate money with problems, stress, and constant fear of shortage. In reality, money is just a tool that helps achieve goals. By changing your attitude toward finances and viewing money not as a source of anxiety but as a resource for growth, managing it will become significantly easier.
Learn to control expenses and create a budget
Financial control begins with basic budgeting. This doesn’t mean strict austerity, but rather a sensible approach to spending. Creating a budget helps you understand where your money is going, reduce unnecessary expenses, and gradually build capital. It is also important to establish a financial cushion — an emergency fund that will help in unexpected situations.
Think about the future
Short-term thinking often leads to financial difficulties. Impulsive purchases, living paycheck to paycheck, and a lack of savings are all consequences of not having a long-term financial plan.
To achieve stability, it is vital to think about investments, retirement savings, and opportunities for passive income today. Explore financial instruments, attend relevant events, and analyze the experiences of those who have already achieved financial independence.
Financial stability, Olha emphasizes, is “not a coincidence but the result of deliberate actions.”
“If you change your attitude toward money, learn to manage it correctly, and think strategically, you can not only escape living ‘from paycheck to paycheck’ but also build confidence in tomorrow,” the expert concludes.
