I have found that monthly budgeting is by far the simplest way to budget but that many people are unable to sit down and pay all of their bills at one time and be done with it. For most people, they must perform a delicate balancing act when paying their bills using each paycheck to pay certain bills. For many couples that are paid twice a month, one of the pay periods is a period of “feast” and the other pay period is a period of “famine.” A budget will resolve this issue!
Assume you are paid $1,000 per week take-home pay and you do not have enough money in the bank to pay all of your bills at once. You must balance your spending to align with the arrival with each paycheck. Using the Monthly Budget by Week tool, you can assign your planned expenses to pay periods in a way that allows each bill to be paid on time or early.
Now, you can see that your budget balances overall, but each week does not equal Exactly Zero (EZ). Because you are planning before the month begins, you can work to develop an EZ budget for each paycheck. Look for areas where expenses can be moved from their overspent paychecks to those that are underspent.
This will look differently depending on when each of your bills are due but as long as your income is enough to cover all of your bills, it will work.
Now you have an EZ Budget for every paycheck! All payments will be made on time and every single financial obligation has been met!
The beauty of this tool is that it puts you back in control! You might be thinking it is completely crazy to skip a week of grocery shopping. But you can easily go one week without purchasing groceries by using the food in your pantry and freezer. And you have a week to prepare for the week with no grocery money. Because you have planned before the month begins, you can identify any financial challenges before they happen.
This is the beauty of the budgeting process. You are able to manage your money instead of feeling like your money is managing you. You are telling your money where to go instead of wondering where it went!
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“I can promise that if you read and apply what has been written here then you will eliminate financial regret from your life.” – Joe Sangl