For many Americans, watching their checking account balance diminish well before their next paycheck is an all-too-common reality.
A recent MarketWatch survey showed that 57% of Americans live paycheck to paycheck in 2025. Rising living costs, coupled with various debts, can force many Americans into living paycheck to paycheck, which means depleting one paycheck just as – or even before the next one is deposited into their account. This often happens as the result of being “cash flow negative,” rather than positive, meaning you are spending more than you make, according to Mandy Kelso, Head of Financial Education at TD Bank.
Below are tips from Mandy to help you start breaking the paycheck-to-paycheck cycle, without compromising the essentials you and your family rely on.
Know your money flow
First, identify if you truly are living paycheck to paycheck. To do this, you’re going to need to look at your numbers and understand your money flow. Mandy said start by simply recognizing where your money is coming from – and where it is going.
“In this day and age, we have a lot of our payment solutions and income coming in through different channels,” she says. “We might have Venmo coming in. We might be spending money or sending money to friends when we go out to dinner through a cash app. So, we have lots of ways that our money is going out, and lots of different ways our money is coming in.”
That ebb and flow of money? That is where Mandy says you’ll be able to identify your financial health.
“Take a look at all of your accounts and figure out if you're cash flow positive, and if you have three months or more savings in case of an emergency,” she said. “If you don't have that savings, then you are living paycheck to paycheck. Or you're in negative cash flow and don't know it.”
TD Bank offers educational tools to help you build and manage a budget, along with other important topics at its TD Learning Center, to help you gain a clearer understanding of your own finances.
While it can be scary and discouraging to recognize you might have a money flow problem, Mandy said knowledge is power and is an important part in correcting or adjusting your spending habits – whether it’s a new or ongoing problem.
“Once you know it, it's time to take action and figure out how to get that cash flow more positive – positive enough to start building your savings,” she said.
Figure out where you can scale back
While the ability to scale back will differ across regions in the United States, there are ways that everyone can help their bottom line, regardless of where they live.
Transportation
Transportation will vary depending on where you live.
For those in metro areas, public transportation can often be a helpful way to lower overall transportation costs. The cost of taxis and other similar options can add up quickly, compared with bus or subway fares. Other options might include utilizing carpooling apps to share rides with neighbors.
Also, a great way to save money, if feasible, is to walk or bike to your destinations. So many cities are highly walkable and others throughout the nation have dedicated bike paths to make it safer.
For those living in areas that are not served by public transportation, a car is often necessary to function. Consider the advantages of getting a used or new car, depending on your circumstance. While a lightly used car can offer significant savings over a new one, an older vehicle may end up costing more in the long run due to frequent repairs.
Shopping around for insurance options can also turn into significant savings, but you must also be aware of every detail of coverage. Saving money on a policy that doesn't provide coverage when you need it could end up costing more money in the long run.
Housing
When you consider the cost of housing, it’s important to keep in mind that it’s not just limited to your overall mortgage or rent, and for those living paycheck to paycheck, there are options for helping reduce the overall cost of housing.
It may not be ideal, but having a roommate or multiple roommates to help split costs can alleviate financial pressures. Another way to save on rent is to look at housing options outside of the trendy areas of a city or town. Renting an apartment or house just a few miles away from the most sought-after neighborhoods can often mean a significant savings.
For those who own their homes, consider looking at the insulation of your home to help reduce heating and cooling costs. No matter which part of the country you live in, a properly insulated home can help prevent variations in your temperature.
Proper insulation can keep your monthly HVAC expenses from quite literally escaping through your roof. You can also utilize plastic wrap on windows and unused exterior doors to improve insulation.
Healthcare
Start by learning more about your medical plan, so you’re aware of what will be covered before an appointment or procedure. Call the office to see if that healthcare professional takes your type of insurance. You can also use apps that help you find doctors who take your insurance.
Budget for medical expenses, avoiding a “it will never happen to me” type mindset. “If you have four kids, you’re going to be in the doctor’s office — a lot. If you plan on getting pregnant, check your medical and amp up your insurance,” Mandy said. Of course, some emergencies are unforeseen, but being on top of preventative healthcare can reduce those costs. “Have annual checkups and be proactive so you don’t get surprised.”
Finally, consider using a flexible spending account (FSA), if available. Also, some hospitals offer a discount if you are able to pay in full.
Childcare
The median amount a family pays for a child to receive 20 or more hours of child care per month is $1100, a number that has pushed families into poverty, according to American Progress. For those living paycheck to paycheck, this can be downright unsustainable, forcing families to consider alternative arrangements. But asking the grandparents isn’t an option for everyone.
Mandy recommends considering facilities with a sliding scale for pricing. She also says to look to local Facebook parenting groups, where childcare sharing opportunities for lower cost options are often discussed. Some parents may consider rotating childcare responsibilities if they work alternating schedules, or at least securing backup care options in case of their regular sitter cancels.
Food
Making an omelet? Good luck — the cost of eggs rose over 10% earlier this year, and the cost of beef over 2%. But it isn’t just these two food groups adding up. Mandy said food waste can come from aspirational buying of foods that you probably won’t eat and that ultimately winds up in the garbage.
Though Americans have to determine the cost of their own time and energy, relying on virtual shopping options can hike grocery prices, even without consumers really knowing the difference. Instead, Mandy recommends shopping in the store.
Finally, use coupons and promo codes when you’re shopping online. Hard-copy coupons might not be the norm now, but coupon codes can save you some serious money if you use them consistently.
If you have the space, a freezer can really help because you can buy items on sale in quantity and you won't need to make as many shopping trips, reducing your gas bill.
Miscellaneous
Other seemingly small expenses can eat away at your paycheck. Review forgotten household subscriptions and cancel any you don’t use. You can also use family plans to save a bit on technology bills such as phone and internet.
Finally, if you aren’t happy with your cash flow, see what other skills you have that you could do in addition to your primary job. This could include freelance work in your field, if your situation permits, to weekend dog walking.
With a few small changes, and some out of -the- box creativity, you can start to break the cycle of paycheck to paycheck living — and maybe even build a secure savings account for when life throws something tough your way.
For more on personal finance topics
If you have more questions about personal finance topics, visit the Learning Center on TD Bank's website. You can find more TD Bank services at TD.com. We hope you found this helpful. This article is for informational purposes only and is based on information available as of July 2025 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.