You are probably used to budgeting monthly or at least of hearing of budgeting monthly.
If so I would like to officially welcome you to the ANTI Monthly Budget Zone!
Yes, I am very much against monthly budgets because they just are not effective. Unless you only get paid once a month, then you have my blessing to budget only once a month.
The reason I say monthly budgets are ineffective is the following reasons:
- They don’t keep you in the NOW
- No one can really determine how their whole month is going to play out financially
- It’s not realistic
- Lacks focus and consistency
Most of you plan your activities and expenses around when you get paid.
Often times you may say “I won’t be able to do this until I get paid next week.”
That’s because you are thinking in terms of your pay, so why should budgeting be any different.
I know that you may wish that you could foretell all of your expenses each month so that everything is planned exactly to the “T”. But unfortunately this is life and unexpected things happen.
So you need to start rolling with the punches.
Budgeting paycheck to paycheck is the perfect solution if you get paid more than once a month.
I know you may be thinking that means I have to budget at least twice a month, and if you get paid weekly like my family does then make it four times.
Yes! You do what you have to do to make sure you succeed at your finances.
So how do you start to budget paycheck to paycheck?
One thing that helps me with this is using a calendar. You can just print out a blank monthly calendar and you will add your pay dates and your bills/expenses.
This will allow you to visualize the month and also help you to see what bills need to be paid with what paycheck.
Correlating your expenses to your pay dates helps you focus on the NOW and to remain focused, so if you have something that has come up that needs to be taken care of in the next week you can add it to your calendar and include it in the pay that falls when that expense is due.
See how this is able to show you where your money is going. When I look at mine it gives me a sense of control because I am no longer wondering about what needs to be paid.
You are also able to see the extra money you will have remaining after you pay your expenses for each pay. Now don’t get too happy you need this money to pay for variable expenses such as your groceries, gas, clothes, savings and you date nights. So after you allocate your extra money to their specific destination you should have $0 dollars, that’s what we call zero-based budgeting.
One of the main advantages of paycheck to paycheck budgeting is that it allows you TOTAL control of your money. you can plan for the expected, unexpected, and even your annual and semi-annual payments.
Before budgeting paycheck to paycheck, I used to do a monthly budget because that’s what all the personal finance experts suggested. But it NEVER worked. I think I would maybe get to week one and then the budget was out the window. There was no realistic way I could budget successfully by sitting down at the beginning of each month and guesstimating my expenses throughout the month, there was absolutely no structure and it was driving me crazy. That’s when I was like maybe if I do it based on my pay frequency I will be able to control it better and it will keep me focused. And guess what?
It has worked ever since!
Do What’s Best for You
I have learned that when it comes to taking control and managing your money you have to do what’s best for YOU! So many of you are caught on what other people say or do but what about what you say and what about taking accountability for your actions.
I don’t budget because I’m poor, but I budget because I like to be in charge and know what’s going on with my finances. Budgeting overall has a bad stigma although I believe it’s getting better. But then to say you live paycheck to paycheck is a whole different game.
Go and tell someone you live paycheck to paycheck they will automatically assume you’re poor because living paycheck to paycheck is associated with being poor and struggling.
But this budgeting method is giving a new outlook of what actually living paycheck to paycheck should be.
It should be control, empowerment, growth, discipline, awareness, etc.
This is when you have real FREEDOM!
just because you make a lot of money doesn’t make you free, because often that money is just being spent, and it’s not going towards retirement or your child’s education, or investing.
FINANCIAL FREEDOM is part of a mentality that is manifested through your actions.
Paycheck to paycheck budgeting will allow you to do what’s truly important to you, so you can truly be rich.
In mentality and also in the natural.
Related: Cash envelope system
Will you give paycheck to paycheck budgeting a try? If so, let me know how it goes?
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