Getting ahead on monthly bills can seem just unrealistic. Every month I dread knowing a bill is coming or even looking at my bank account after its paid. I started to wonder if it’s even possible to pay ahead. After that, I wrote down all my expenses in a journal and thought of many scenarios. I could not see how I can try to save if I’m always paying for what due. So I dug into it more and I did my research.
Specific Timing throughout the year that benefits your Budget
Let’s just begin with the saying “Timing is everything” And by timing, I’m speaking of paycheck time. There are usually two-three months throughout the year that you get an extra paycheck. If you’re like me and get paid on a bi-weekly schedule, you can maximize this technique. Those months out of the year I get the third paycheck. I would normally prep in advance and pay off one of my largest bills. I know you can probably conclude that one of the largest bills are rent or mortgage. Apply the extra paycheck to the largest and work your way down. Another perfect time to pay off some bills is quite true the obvious income tax time!
Income tax refunds are useful in getting rid of larger bills. You can settle on your car loan, pay your rent for a few months, rid of some debt on your credit report. The money as anticipated is not something you’re used to so don’t go crazy and buy a bunch of useless stuff. Pay your bills and put away the savings towards a bigger goal. One of my biggest goals is my down payment for my dream home! 2020 we are doing this thing!!
Saving extra money when it becomes available to you
Save when you have extra money! Have you ever received a bonus and thought “what should I do with this?” Or maybe you work extra hours and got a larger paycheck from all the overtime. The best thing you can do is use that extra income to pay your bills ahead of time. Sometimes is good to plan out ways to earn extra income for those unexpected expenses. It doesn’t hurt to take advantage of a side hustle or some overtime for these expenses. The holiday season can definitely dip into your pockets. It’s not unusual for many to find extra work around the holiday season for shopping and gifts.
Most seasonal jobs are available around Christmas time when consumer volumes are at their largest. Try something different this year and work extra around Christmas time to pay something off in the following new year! How great would it feel to get ahead start on a resolution, especially if its something you have to save for.
Put the extra money away for at least one year, then invest
You have been working all year long on the same salary, and suddenly you get that raise you always wanted. What a surprise! you get a nice buffer in your paycheck. What do you want to do with it? Buy a nice purse? Or the next iPhone? You might be tempted to get yourself something new or to upgrade your lifestyle. The main thing here is that you have survived your current salary so far. What would it hurt to just hold out a little longer, my advice is for an extra year.
Just put one more year of that little bit of a pay increase aside in your savings. Put the money in a money market account for a good interest rate return. Yay!, You! And now you got a big boost in your savings! Slowly add to your savings where ever you are about to cut back on expenses. Cutting back on expenses can provide you with the ability to pay extra bills. Let’s get into it more.
Be Frugal and Live below your means
You can save so much money but with outliving below your means, How long will it last? You don’t have to live as if you are destitute, just be frugal. Do some research on shopping cycles and sales to cut back on groceries. If you can cut your grocery bill by at least 30% you can put it towards next month’s expenses. Every month try to include in your budget cutbacks. See where your money can be overspent and make out a plan to limit this category. Maybe you need to cancel a subscription, carpool to work, revisit your insurance premiums, and just get it done.
Put away the savings in a separate account to make ahead of time payments on your occurring bills. If you are tempted to spend the money placing somewhere other than your pocket will keep it from being spent. Put an auto-deposit on that account and apply it to your monthly bills that can be paid electronically. Choose to deposit the funds on the last day of the month so that you have accumulated as much as you can. Next month, your bills will be much if not some already paid for.
Tell me all about it
I’m interested to know what your goals are? After reading this, What are the steps you made?
Budget your savings Pay a month in advance
My last and final tip might be the most straight forward because of its strategy. It’s to use last month’s income so you can pay for the following month. Reading through this I can imagine your thoughts on getting one or two of the bills paid. You’re probably thinking of how can this be possible, all of my expenses paid off a month ahead. It’s a simple technique that surprises many who researches money gurus out there. Let’s go over this together into steps. First, get an actual figure on your monthly expenses. Add up all of your bills, expenses, savings, etc and come up with a total. Someone that has a $4,000 budget will need to cut back on expenses and save long enough to reach that amount.
If you are able to try any of the tips mentioned you will be on your way to the point. Every month put a little money aside until you reach your monthly budget. In this case, with a $4,000 you can save $1,000 a month for four months. After the four months, pay for next month’s expenses, save in the current month and repeat the process. Imagine that stress free feeling of all of your bills paid for. Even if an unpredicted expense were to happen, you will still be ok. Finally, I’m hoping you are just excited as I am with finally have that worry-free month. I know this can be a great strategy for you to try and start.