Over the years, I’ve been trying to make 1 month before my financial goals. This is in accordance with You Need a Budget rule number four that is to increase the age of your money. The idea is to spend the money that you earned last month on this month. In January my husband and me could do this. In the last few months we’ve seen the benefits of making a budget one month in advance.
However, I would like to acknowledge that gathering enough funds to Budgeting a month in advance is a challenge! It took us years to accomplish this as our finances were always limited. But, we are relieved to have finally made this point.
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Budgeting One Month Ahead
Here are three instances when planning your budget one month in advance to protect your money:
At the point when Pay Day Falls Later in the Month
My husband is our primary breadwinner. His check is issued every week. So, in certain months, his paycheck arrives at the close of the month. This means that paying the bills at beginning of the month following simple. Sometimes, however the check will not arrive up to the or 9 of the month or even 9 of the month. in the following month. When we’re behind on our budget, we’ll be short of cash to pay for bills at the start of the month.
However, budgeting a month in advance solved of this issue. This way, I’m able be able to pay bills in time and fully, as we begin July in the month, for example all the money I’ll need is in my budget. In the end, I used the June paychecks to pay for July. This is a great way to save money!
When Paychecks Are Delayed
I am a freelancer and earn around 20% of the household’s income. My money is used to purchase groceries and other categories of budget. Recently, not one, but two employers had a delay when they were due to pay me. If we had not had been one month ahead of our budgets, I may have had to move funds around to make sure we had enough to buy groceries.
But, I didn’t need to worry since I had set aside money. Both of my paychecks arrived around two weeks late and it was not an issue. I just received the money as I received it, and then planned it out for the coming month.
Defector Emergency Fund
If you plan one month ahead, that amount is considered to be one of the funds in your emergency reserve. If anything occurs that could cause a loss of employment or reduction in hours, or in my case delayed payments, you’ll have your this month covered and have a cushion in your finances.
If you’re also attracted by the money in an emergency fund planning it out one month in advance can help reduce attraction because you’ve already decided the way that money will be utilized in the in the coming month.
Final Thoughts
We’ve discovered a number of benefits from making a plan for one month ahead of time in the short time we’ve done it. We’ll see. Perhaps we’ll get to budgeting for two months in advance. We’ll then move one step closer to having a 6-month emergency reserve.
