Over 75% of full-time employees are caught in the paycheck-to-paycheck trap. It’s time to change that and improve your financial situation.

Receiving your paycheck is gratifying, but it’s discouraging to see the same financial situation two weeks later. Living this way makes it tough to find peace of mind. Approximately 60% of Americans find themselves in this cycle, spending all their income monthly, as revealed by a LendingClub study. Although many own homes or retirement accounts, cash reserves are often lacking. Let’s focus on how to escape this cycle for good.

Financially, this way of life can be detrimental, and it’s also emotionally challenging. “Debt tends to accumulate, and so does stress,” says a senior financial adviser.

Breaking free starts now. Here are six strategies to help you.

Live on Less Than Your Income

It might sound simple, but committing to spend less than you earn is crucial for breaking the cycle. If you manage your expenditures wisely, you’ll create a “budget surplus,” according to financial experts.

As you begin to have funds left over after each pay period, you’ll feel more liberated. Start saving for unexpected expenses, so you’re prepared for whatever comes your way.

“Living below your means and having savings set aside can prevent the cycle from continuing, offering you valuable peace of mind,” experts advise. Aim to save at least 10% of your paycheck, and consider setting up automated transfers to make this easier.

Establish a Budget

To spend less than you earn, you must track your expenses. Begin by creating a practical budget if you don’t already have one. Google Docs is a free option that allows you to create and share your budget spreadsheet with others contributing to the household.

For a more advanced approach, tools like YouNeedABudget (YNAB) and Empower can compile your financial details and send alerts, making budgeting feel less tedious.

Start an Emergency Fund

Even a small start can make a difference when building an emergency fund. Assess your budget and categorize your expenses into necessary and discretionary. Necessary expenses include rent, groceries, and utilities, while discretionary spending covers dining out, entertainment, and shopping.

After categorizing your spending, consider cutting back on discretionary expenses, even by just $100 monthly, and funnel that into savings. “Be realistic about your cuts to avoid discouragement,