Payday Routines: Do These 3 Things When You Get Paid Salary
Are you one of those in good employment or even earn a decent amount of money and yet at the end of each month you go shoot where did all the money go to because you don't know how you spent all of your salary and it's not because you are Reckless with money per se no you simply cannot account for how you've spent all of your salary, or perhaps you are saving a little bit of money each month but when you check your paycheck and you compare it to the amount of money in your savings or investment account you know that you could do a bit more, if you fall into any of these categories then this article is for you because in this article I'll share with you three simple things that I do each month that ensures that I've got savings and my money is working hard for me in fact if you stay with me till the end of this article I'll share with you three other simple strategies, that you could use to ensure that you are saving money each month let's.
It is now time to go to work. Let this money work hard for my financial freedom. Rather than, you know as a way of you know enjoying myself and showing my status of the work I do, the first thing I do at the end of each month is to draw a budget that aligns with my goals.
And this is important because, once the money hits your account and you don't have a plan for it, you are likely to spend it anyway. In fact i've got a friend who tells me that shadra. I don't know what happens, but if I don't have money, I'm okay, but once money comes into my account, there are so many things that just crop up, and I end up, you know.
And then, at the end of the day, it guides you to know that based on how much I'm earning and how much I'm going to spend on all of these, you know. I've only got 20s left, or I only got, you know, $40 left, and then based on that, you can adjust it to know that no. I cannot spend, you know. On clothing each month, so I need to reduce that to maybe 3.
And then the budget is already automated, so it tells you how much money you are left with. In fact, what I like about my tool is that you know that if you don't, you don't have any money left. It changes to negative, and it's red, and so you know that red is not good. You know, red is not good at all.
It tells you that, so you are able to adjust the numbers to know how much you can actually afford on transport. How much can you afford on this? You'll be surprised at how many people have spoken to you. Who only realizes that Shak, it looks like you know my car is too expensive?
How can I cut down on that? And then we get into thinking, we get into talking, and then you realize that maybe I'm not ready for this car. You can get maybe a smaller car, or you can actually use public transport based on where you live, so this is good to you, and I know that you know there are all these theories out there that save 5 to 10% of your income.
I really think that it depends on your goals. That's why I say to set a budget that aligns with your goals. For example, if you're 50 or 55 years old and you're trying to buy a house before you retire but you've got no savings, then saving 5 to 10% of your salary is not going to get you the house that you want, so I think that setting your goals and aligning your budget with them is really crucial.
It also helps to be ruthless, even with how much you know you spend. And for this budgeting exercise, in fact, if you've not done it before and you need some help, I'm happy to meet up with you to help you draw a budget. But it's important to help you discipline how you spend your money because, without a budget, you wouldn't know how you spent your money, and at the end of the month, you would go dry again.
The next thing you want to do is set a direct debit or a standing order from your salary account or your current account to your sub account for savings, investments, or spending.
And you now have to decide how much you're going to save sometimes you may actually not save so you want to make sure that you've got direct debit or standing orders, to do this so that it takes the emotion out of it also frees your mind of you know making this decision every month because if you've got a direct Dev set up you can spend your time to actually think of what really matters and not you know actually now thinking of how am I going to spend that money so you want to do that in fact for security reasons I can't share my account details, but you will be surprised with you know how many direct debits have actually go going on, and these direct debits are set in a way that because I get my salary at the end of at the end of the month so by 27 28th I get paid.
And then on the 1 or the second, all the direct debits go out, so you know, by the end of the month. I'm super excited. You know, yeah. I've got this money in my bank, but then by the first of the following month. I'm done because all the direct debits have gone out, so whether it's my rent, whether it's my credit card payment, whether it's my you know my savings.
All these are automated. And that is what you want to do. You also want to know all these different accounts or the direct debit set in one account because sometimes you know all these bank switch deals come up and you know, depending on the circumstances. There are sometimes and conditions you need to meet and I'll put that in the description box below do check it out the third and the final thing you want to do which I've already hinted in the second point is to set direct deit for all your expenses as far as it's possible even including your credit card payments, direct debited from your salary account so that you ensure that all your payments go through in fact for credit card even if you cannot afford to pay the whole thing you want to make sure that you've paid at least the minimum of course there will be interest payment charges but you know that you're not missing a payment that would actually hurt your credit score like I've said you want to set the direct debit not too many days after you are paid so it depends whether you get paid by weekly or you know weekly or even monthly, you want to make sure that your direct debits are set up in a way that once the money hits the account not many days afterwards.
You know, maybe two or three days later, the direct debits go out. To ensure that, in fact, anything could go wrong, there's a month where you know your money does not come. You can call your you know your experience companies or whatever company you need to call to adjust the date so that it doesn't count as a missed payment because a missed payment will hurt your credit score.
