An interesting thought came to me today as I was looking at the calendar this morning (post is a day late).
The reason I was checking it out was because I’ve spent all my budgeted money (plus some) this month. I was trying to decide of I should do groceries today and allocate the spending to May or wait until tomorrow, when it will actually be May.
In the grand scheme it doesn’t really matter but it made me realize that I look at my budget as a monthly sum of money even though I’m paid fortnightly.
I do this because:
- Having the LOC attached to my chequeing account makes it easy
- I find it less stressful to budget this way
- I like paying all my bills and savings within the first week, if I budgeted like I earn I’d have limited funds at the beginning of the month as most of that paycheque would go to bills
None of this is bad as my system works for me, for the last year I’ve consistently spent less than I earned per month. The reason it’s coming up now is because for the first time in years my LOC is in the black. It’s a slightly false black as my entire paycheque is in it. Based on the May budget I outlined for myself I won’t be able to stay in the black much past the 6th.
I suppose I’m also afraid of relapsing into debt. Once I pay off my debt I’d like to start having my pay be deposited into my chequeing account where it will earn interest. I’m afraid seeing my paycheque in it’s entirety might make me a bit reckless, in the sense that I’ll be willing to spend, “Just $5 more for the upgraded version.” It’s that sort of thinking that lands me in trouble at the grocery!
How do you budget? Is it based on when you receive your paycheque?