People are stuck living paycheck to paycheck. When a paycheck arrives, they desperately try to make it do all of these magical things and then white-knuckle it until the next paycheck. That’s not great. Our paycheck plan makes every paycheck look the same.
Once you set this system up, your money will do the exact same thing every paycheck, which is going to make your life easier. Furthermore, you’re going to have enough money to last so you won’t even worry about when that next check is going to hit!
Your paycheck plan will take your monthly expenses and divide them by the number of paychecks you have each month. Then you’ll set up automatic transfers to the designated amounts you determined to happen on payday. That means the only thing you’ll have to do differently when a paycheck comes is fund anything special for the month and make any extra debt / savings payments.
To set up your Paycheck Plan:
- Determine amount left from paycheck after bills are paid.
- Determine per paycheck amount for each monthly expense. Examples include, but are not limited to:
- Spending money
- Savings buckets
- Set up an automatic transfer on payday to fund every expense in its designated account.
- Stop by an ATM and get any cash items out on payday (recommended for gas, groceries & spending money).
In this episode we also cover:
- How your budget is monthly, but it’s funded by paychecks.
- Don’t wait until the end of the pay period to pay extra on debt.
- How you can’t spend money if it’s not there.
- How to save money and pay extra on debt every paycheck.
- How there’s no such thing as an extra paycheck.
- How Vanessa’s pretend gas budget is laughable.
- How to fund groceries, gas, haircuts and everything else each paycheck.
- How you only have to do TWO things manually each paycheck once you’ve set up our systems.
We have clients tell us, “I don’t even look at the budget.” All they do is look at the paycheck plan because it tells them exactly what to do and they know that if they follow the paycheck plan they don’t even have to look at the budget because everything happens automatically.