Budget isn’t all about your annual or monthly income. As we all know, there are tax obligations and other deductions applied before you actually know the amount you can budget in a month. So take a closer look at your pay stub to see your net pay, and determine how much you actually pay for tax obligations as well as various other reductions. Then proceed with your monthly budgeting using whatever’s left in your pay check.
A good mindset to have in budgeting your monthly salary is to think of smartly utilizing your money to cover your bills, settle your debts and also still have some fun. It is easy to spend all your money in a blink of an eye, and then leave you falling short at the end of every month. All it takes is discipline coupled with a good plan in how you spend your money, so you can live off your monthly salary comfortably.
Here are some of our tested pieces of advice to help you:
- Pay All Bills Immediately
The danger of setting aside all your bills and focusing first on other expenses is that you can end up having no money to cover them afterwards. Paying the bills should be your top priority, and you’ll be kicking yourself if you get penalty for paying late or worse, being disconnected from important utilities. To prevent this from happening, you should pay your bill immediately after getting your salary…all at once!
For more convenience, you can set up a direct debit to pay your bills, as many companies allow it. It is easier to set it all up and you’ll conserve your time, considering that you are doing everything all together. If you have other expenses immediately subtracted from your checking account, such as your mortgage repayment, you can set it to be paid early, like a day after you receive your salary. For other bills, you can set your payment time right after you receive your income monthly as well.
- Unsubscribe from Services that You Don’t Really Need
You must never ever pay for any type of service that you’re not actually using. Many are just caught in an agreement that deducts money from their banks automatically, like cable television, gym, and maybe even health insurance.
The strategy here is to take the time to assess whether you actually need the service or if it would be the best strategy for your family’s budget. This should be done before you sign onto large month-to-month costs that consumes right into your paycheck, or you’ll end up wasting money every single month. But remember to also consider other deductibles and copays, especially when you have a spouse and a family to take care of.
For married people’s health care, you should compare the healthcare plans used by both of your companies and also opt for whichever provides you one of the most value. Capitalize on any added health and wellness perks from your company as well, like rewards for making healthy decision or financial savings on health club memberships. All these might lower your monthly premium and also boost your take-home income.
- Use Only Cash for the Rest of Your Budget
It may seem too traditional, but I suggest you switch over to the envelope budgeting system and a cash-only basis. This indicates that you will certainly not utilize your debit or credit card, only the cash you have allotted for each category for your budget plan.
This is easily doable by getting all your cash from your bank after you receive your monthly salary. Place the money to their respective categories within your budget plan. This will limit your expenses based on what you have already planned, so you can easily see if you’re running out of cash for a particular category and you have to slow down in spending. This method is is a terrific alternative for expense tracking, as you already know just how much you have for a particular category. It also safeguards your money and prevents your budget for essential home needs get intertwined with your money for leisure.
- Find Ways to Earn More Cash in Your Company
This might not apply to everybody, but if you are constantly doing your job well and handling more obligation, as well as building on your skills, you’re are entitled for a raise or a promotion. If it isn’t given to you without you asking, get ready to explain success situations and how you have favorably impacted the business and culture where you work.
Aside from this, you can look into small cash money bonuses offered to most outstanding employees throughout the year, and aim to get that. Sometimes the information about it isn’t given freely to anyone, so don’t hesitate to ask your management. You can also get more from overtime pays and additional functions in the office, so don’t be shy to ask around for that opportunity.
It’s definitely a common problem to have your pay check vanish almost as soon as it hits your account. All of us deal with household expenses and living costs, and sometimes your pay check is just enough to cover everything. But if you start thinking of just how to take full advantage of that money before it goes out, you might find that you could still have a bit more money to use for leisure or store as savings by the end of the month. All it takes is proper planning coupled with the right strategies.