PAYCHECK BUDGETING
Budgeting one paycheck at a time.
When money is tight, a monthly budget can hide the real problem: a big bill that comes due before the paycheck that is supposed to cover it. Planning by pay period fixes that.
1. List bills by due date
Write down every bill with its due date and amount. In the planner, add them to the Bill calendar once and they appear every month.
2. Match bills to paychecks
For each payday, list the bills due before the next payday. Those are the bills that paycheck has to cover. Paycheck plan in the planner does this for you when you enter the pay period.
3. Cover essentials first
From each paycheck, pay housing, utilities, food and transportation first, then minimum debt payments, then everything else. If a paycheck cannot cover its bills, call the company before the due date. Many will move a due date or set up a payment arrangement.
4. Start a small cushion
Even $10 or $20 a paycheck set aside adds up. A small cushion of a few hundred dollars can prevent an overdraft or a late fee, which saves money right away.
5. Check the next few weeks
Use Cash flow to project your balance through the next two or three paydays. It shows the first day your balance is projected to go below zero, so you can plan around it.
These guides explain common budgeting approaches. They are general information, not financial advice.