Are you wondering where did your money go?
Too often, people spend their paychecks before they receive it. The excitement of getting paid on Friday to do whatever your heart desires will get you into debt much sooner than anticipated.
I’ve seen employees make the mistake of opting out of direct deposit and cashing their checks at a currency exchange.
First mistake…
not owning a checking account.
Second mistake…
paying a fee to cash your check.
When your money is burning a hole in your pocket you have a tendency to spend all of it before paying your bills.
Something magical happens from your job to your house, it’s the mall. You too may have witnessed the looks on some consumers face when they stand at the register with an arm loaded of clothing items chanting “it’s time I treat myself”. The only person they’re fooling is themselves because they’re already treating themselves.
If you’re tired of living from Paycheck to Sunday morning it’s time to change your financial behavior. Yes, I said it! You get paid on Friday and on Sunday you sit in your place of worship and watch the plate pass by because you spend all your money so now you can’t give a charity/gift.
Take the proper steps to:
- Make the decision to change your financial behavior
- Create a weekly budget to stay focus
- Include every expense in the house
- Budget for leisure expenses
- Live on your disposable income until next paycheck
When you budget for a leisure expense you won’t feel deprived, but will control how much you have to allocate toward this fund. Without a plan you will find yourself spending 95% of your paycheck toward leisure instead of being responsible.
The plan also allows for you to have (disposable income) money in your pocket until your next paycheck. Until you can control your financial behavior you allocation should consist of:
- 10% charity/gift
- 10% disposable
- 15 % savings
- 65% debt **
Related articles
- How To Set Up A Budget With Inconsistent Income (christianpf.com)
- Debt Free and Happy, but Where to Go from Here? (frugaldad.com)
- Build the Habit, Then Trick Yourself into Building Your Savings (mint.com)
- Can the Internet Provide Checking Account Services? (brighthub.com)
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