Most people that make a sizeable income never really plan ahead or budget because after all, the money is flowing and there will be more made the following week, but the truth of the matter is that everyone should be planning well in advance for what will come during the month or towards the end of the month no matter how much money you have.
Using credit cards has never been shouldnt be an answer to a lack of money in the bank. If you find that towards the end of the month or towards the end of a work week period you are awaiting a check or deposit and end up using your credit card then you have a problem. its time to reevaluate what you spend on a weekly and monthly basis.
The first step to correcting the issue should be to look at the needed things you spent money on. This includes food, gas, insurance, electric and other housing bills. Once you have this amount then you need to look at whether you truly have money left for the week, or the month. Much of this balancing act will depend on whether you get paid weekly, bi-monthly or monthly. The longer you have to wait for money the harder it will be to balance this issue.
If you feel like you need to treat yourself to dinner or some other spending habit you have that is not needed to survive, then you will need to start putting away spending money for the following week or month when you receive your check or deposit. In order to do this, for the first week or month.. however you get paid, you are just going to have to spend very little.
The following week or month you can now spend the money you saved previously. This ensures that you are ahead of the game for the following income received from your job. Should something come up or happen, you will now have the extra funds to cover anything that may be a curveball for spending in your week. Along with this you should be saving from yourspending money as well. So it would be wise to open another account, and after doing the math at what you will have for spending for the following week, take 25% of it and put it into a separate savings account. this way when the following week comes and you are ready to spend, the money you put aside the previous week won’t even be in your mind.
This method still requires discipline, but maybe not so much for those who have a large income. however it is always a good idea to save money no matter who you are. It just makes perfect cents.
