By – Kayode Ipadeola
Payday is great. Your account is fat, and you finally have money to restock your shelves, buy the shoes youve been wanting and maybe go out to eat at a nice restaurant. If you find yourself celebrating each payday, then worrying the week after about how you are going to put a proper food in your stomach or how youre going to afford to pay your transportation fee for the new month.
If you have a budgeting and cash flow issue and you have no savings . Then its your lucky day to get such situation fixed up using these few different strategies.
Dealing with a Monthly Pay
If you are paid monthly, you will be flush at the beginning of the month, and may be scraping by at the end. One way to deal with this is to divide your budget into weekly amounts. This works best for transportation costs and entertainment categories. You can do this by switching to cash for those categories and having a different envelope for each week. It can help to set it up to have your bills due at the beginning of the month when you know you will have the money to pay those bills. Dividing the remainder of your money into weekly amounts can help you manage everything.
Dealing with a Semi-Monthly Paycheck
If you are paid twice a month or every other week, you may have times when you are barely making it between paydays and times when you have a lot of extra money.
The solution for this is to set aside money from the payday when your bills are not due to help cover them during the payday when money is tight. This means you would set aside half of your income and save the other half in an account that cant be easily accessed.
Saving Up a Months Income
Another solution is to save up a months worth of income and to use that to cover the bills for the next month. This makes it easier to divide your spending up by week, and you will not be left feeling as stretched, especially if you break down your main spending categories into smaller ones. The envelope method can help you here, as well as a budget that maps out what you are going to spend when. Remember your budget Is your friend.
Many of these problems can be solved with a solid budget in place . The spending plan you set up each month will stop you from spending too much on shoes so that you do not have to drink garri for the week-ends of every month. If you are tracking your spending and sticking to your plan, you should feel about the same on the first few days of the month as you do on the last few days of the money. If you are switching jobs and pay cycles, you may have a bit of an adjustment period as you get used to a new schedule. However, if you have saved up your months salary and you are sticking to your budget limits you should be okay.
Dont Forget Your Emergency Fund
Its much important to include emergency funds because they are one of the key tools to help you stick to your budget during lifes unexpected events. You need to be careful that you are not continuously dipping into your emergency fund because you overspent on cloths or snacks. It needs to be there for real emergencies like an emergency visit to a family function or an unexpected trip to the hospital. This allows you to absorb those costs without adversely affecting every other part of your budget. When you used your emergency fund, it is important to replenish it as quickly as you can. This means that you will always be ready to handle any disaster. This can help prevent your financial problems .
Enjoy the rest of the week.