02/12/10
Amy
tags:   ,

(Money Saving Tips) Paycheck-to-Paycheck


There are few things more stressful than needing to shuffle funds or worrying about your bank account going negative at the end of the month while you wait for the next paycheck to come in. Especially if you are self-employed, paychecks can often be delayed, putting great strain on the budget.

But with a just a little bit of organization and planning, you can easily eliminate this stress from your life.

Begin by setting up an additional checking account. This will be your “holding account” and it is what all of your paychecks are deposited into. Before each month begins, you and your spouse work together to determine your budget and the amount of money you need to meet that month’s expenses. On the first of the month, transfer the amount of money you determined that you need into your regular checking account. Any extra money in the holding account can then be transferred into savings. As that month progresses, your paychecks will again replenish your holding account and will wait for you there until you do your budget and transfer again at the beginning of the next month.

Gone are the days of living paycheck-to-paycheck. You will always be one month ahead.

*Tip – If you do not initially have the money to set your one-month-ahead-plan in motion, temporarily use your holding account as a savings account. Deposit your savings into that account until you accumulate one month’s worth of expenses.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>