No one enjoys paying bills. I for one hate them with a purple passion so I strive to have as few as possible.
When I moved out on my own decades ago, I really struggled. It never seemed to fail; a bill would come due before payday arrived or my check would be short and I wouldn’t have enough. I would sweat bullets every single month as I tried to juggle my finances.
Eventually I worked out a way to resolve the issue. I would pay all of my bills on the first of the month after saving the amount needed the month before. Since I didn’t want to be broke while I saved up the money, I would work out just how much I needed to save every single week on a spreadsheet.
Now that I’ve got a regular paycheck I’ve been able to build up a cushion in my checking account. Thanks to this cushion I no longer have to painstakingly account for every upcoming bill each payday.
Since I know I will be safe if I spend $25 a week on laundromat and extras, I pull that out of the bank and keep it in my pocket. When the money is gone, that’s it. No more little extras until the next payday. That prevents me from accidentally dipping into my bill money. The rest of my paycheck is left in my bank account until the first of the next month.
When the first of the month rolls around I pay all of my bills manually. Once that task is completed I look at the amount that is left. A portion of it (usually half) is sent to my online savings account while the rest is mine to spend or save as I please.
My financial cushion is kept untouched.
How do you budget to pay your bills every month? Please share your stories in the comments below.