‘I Make $125K but Still Live Paycheck to Paycheck’ — a Budgeting Expert’s Fix
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Your combined family income is $125,000 a year — which should feel like more than enough to live on. Yet for many households, it isn’t. You and your spouse find yourselves living paycheck to paycheck. What do you do to break this cycle? That’s the question GOBankingRates reader Jennifer posed to our Top 100 Money Experts series.
Luckily for Jennifer, we knew just the expert to help her. As the founder and CEO of Clever Girl Finance — one of the largest personal finance media and education platforms for women in the U.S. — Bola Sokunbi has helped countless people gain financial independence and achieve their goals. She has a clear message for Jennifer.
“Jennifer, you’re definitely not alone. So many families are earning what seems like a good income, but they still feel like they can’t get ahead,” she said. “The truth is, it often comes down to a mix of high living costs, debt and expenses that quietly add up over time.”
Sokunbi shared practical tips and strategies to help Jennifer and her husband stretch their income further.
Start With a Review of Your Budget
Jennifer and her husband should start by putting their budget under the microscope for a couple of months to see exactly where their money is going.
“This isn’t about guilt — it’s about getting clarity so you can create a plan to move forward,” Sokunbi said. “Once you can see the full picture, you’ll know whether your main challenge is high expenses, overspending or if your income just isn’t stretching far enough in your area.”
Sokunbi points out that even with higher incomes, families like Jennifer’s can be hard-hit by major expenses such as housing, child care, student loans and car payments. The rising costs of everyday necessities like food and utilities certainly don’t help.
“For many families, it’s not that they’re being careless — it’s that their fixed expenses leave very little room to save,” she said.
If Jennifer’s review reveals that most of her family’s income goes to essentials like rent, groceries and bills, they might be facing an income issue.
Identify Any Spending That Can Be Cut
Sokunbi also encourages Jennifer to review her budget for signs of lifestyle inflation — meaning she and her husband may have started spending more as their income increased. These small lifestyle upgrades can quietly strain finances over time.
While guilt and shame aren’t productive, Sokunbi suggests keeping an eye out for overspending. If most of your spending isn’t going toward necessities, large portions may be going to nonessentials like dining out, shopping or subscription services.
“Often, it’s a mix of both — and that’s okay,” she said. “Awareness is the first step to making changes.”
Create a Simple, Actionable Plan
Once Jennifer and her husband know where their money is going and have identified some expenses they can cut, it’s time to create a plan that aligns with their financial goals.
“Setting clear financial goals helps you stay focused and make more intentional spending choices,” Sokunbi said.
They might focus on paying down high-interest debt, reducing nonessential expenses or building an emergency fund. Sokunbi said that even saving a small amount each month, like $25 or $50, makes a difference over time.
As part of their plan, they could also explore creative ways to earn extra income, such as taking on a side hustle or part-time job. Opportunities may be closer to home, like selling unused household items like kitchen tools, clothing, or attic finds.
Sokunbi encourages Jennifer and her husband to think of these changes as a powerful way to reframe their finances.
“You’re not failing — this is a reset moment. With awareness and a few consistent changes, you can absolutely move beyond living paycheck to paycheck,” she said.
Prioritize Wisely
For Sokunbi, clear goals give your money direction and purpose. That’s why she counsels Jennifer and her husband to be intentional about what they want their money to achieve.
“When you know what you’re working toward — like building an emergency fund, paying off debt or saving for a home — it becomes easier to prioritize and say no to things that don’t align with your bigger picture,” she said. “It’s not about being perfect; it’s about making intentional choices that move you closer to stability.”
Bottom Line
When you’re living paycheck to paycheck, life can feel overwhelmingly stressful — a reality that Jennifer and her husband know all too well. But Bola Sokunbi wants them to know this doesn’t have to be their reality forever.
“You can absolutely turn things around. Living paycheck to paycheck doesn’t have to be permanent — it can simply be a season you can change with awareness and small, consistent action,” she said. “Start where you are, give every dollar a job, and celebrate progress along the way. Every step forward counts.”
This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.
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