Best budget advice I ever received….

What is the best budget advice you ever received?

That advice will now be second best to this one….

Live on last month’s paycheck.

Yes, the idea is radical. Paycheck to paycheck living is the way most people live. 76% of Americans are living paycheck to paycheck. It is the norm; it’s supposed to be that way right?


Paycheck to paycheck living is stressful. Knowing that after every paycheck, (or shift for all my servers out there), the money in your account will either go to your electric bill, or that week’s groceries, and then you are back to zero is stressful. There is no cushion. What happens if you lose your job? The pressure to find a new one is on. What happens if an emergency happens? Your bank account will sit at negative until you find a way out of the debt.

Again, paycheck to paycheck living is stressful. There is even a whole forum for people who do not enjoy it.

My plan to stop living paycheck to paycheck is put yourself one month ahead of schedule. Live off last month’s income, and this month’s income will be next month’s budget. Simple enough right?

Let me explain further.

I started with a monthly budget. One that included all my set expenses, and it included a savings category. This savings category would was to eventually save enough money for one month worth of living. My biggest tip for this period of time that you are saving is to be patient. Your savings will not grow over night, but don’t take your eye off the prize. Putting yourself one month ahead of schedule will ultimately be the best decision you ever made. As my mom said, slow and steady wins the race, so slow and steady continue to save your money. 

Eventually you will reach your goal. Say this goal is $2000. Once you reach your $2000, you can begin to use that money for the new month’s bills and expenses. Begin on the first of a month, it makes it easier to keep track. 

The $2000 is your budget for this new month. Everything you make this month will be your budget for next month. 

Here are more detailed tips on how to get yourself living on last month’s income by KEVIN.

Once you get this system down, a weight will come off your shoulders. I promise. Not living paycheck to paycheck takes the fear out of bills. It takes the fear out of going out and spending money. It takes the fear out of life!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s