The first time I had a job that paid monthly, I thought I would be broke. I didn’t know how I would manage one paycheck the entire month. Surely, I’d spend all the month by the 10th and spend the rest of the month broke. It turned out to be the best thing that ever happened to me. I would pay all my bills at the beginning of the month, regardless of when they were due. Then what I had left over would be what I could spend/save for that month.
Looking back, managing weekly and bi-weekly paychecks was the hard thing. When all the bills are due at the same time, most people end up spending one of their entire paychecks on the bills. Then, there’s nothing left to save or even spend on food. Then, because they’ve been broke for two weeks, they tend to splurge the second paycheck and they end up broke again. That’s no way to live. So, I’m going to tell you two ways to manage your monthly bills when you get paid on a lesser timetable.
Scatter Your Due Dates
Instead of trying to match your paychecks to your due dates, make your due dates match your paychecks. Call some of your creditors and ask them to change your due date. Leave some at the beginning of the month and pay them out of one paycheck. Change others to the middle/end of the month so you pay them out of another paycheck. That way you’re not paying all your bills with one paycheck.
Build a Buffer
Build up the balance in your checking account so you have enough to cover half your bills when they come. This might mean living frugally on a couple of your non-bill paychecks for a month or two.
Let’s say you get paid twice a month. Your first check typically goes to bills while the second paycheck gets blown. This month, leave half of your second paycheck in your checking account. When the next month comes around, you’ll already have some money in your account, so you can use less of your first check toward bills. You’ll have some breathing room. Continue to leave part of both checks in your account, so you don’t have to use all of one to cover bills.
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