Every time the end of the month arrives, I am definitely one of those people who will be dividing up whatever remainder money I have left to each day until payday so that I have enough to last me that long.
If you're confused than wow must be nice being rich... I mean, come on! I'm sure I'm not the only one who does this!
Anyway, after thoroughly analyzing my whole financial situation, I realized that maybe I end up like that every month because I don't have a proper way to manage my money. The first thing you need to have when starting to manage your finances is a proper payday routine.
Here's how to create the best payday routine in 4 simple steps:
#1 Review Last Months Expenses
The first thing you need to do before you get your pay is look at the previous months and see how much you've spent. Go through your budget and see if you managed to stay below your budget or if you've went over your budget.
If you went over the budget, look at the expenses that cost the most and try and find ways you can reduce your spending in that category,
#2 Move Any Extra Money To Your Savings
The night before your payday, look through your bank account. If you have a little extra money, then transfer it to your savings account. Instead of thinking, "Yay more money for me to spend!", it is better to save that money instead of spending it.
This way you can avoid spending unnecessarily and instead save towards a long term goal. Make sure you do this before your payday so that you won't be tempted to splurge all your extra money.
#3 Pay As Many Bills As Possible
Even though your bills have a due date, pay as many as you can as soon as you get your salary. After paying all your bills, you can get a clearer view on how much money you can spend throughout the month.
It will be easier to list down all the fixed monthly bills the night before and tick them off one by one as you pay them so that you don't miss out on any.
#4 Create A To-Do List
As said in the previous point, it is better to have a list of fixed bills or any other fixed expenses that you will be spending on throughout the month, not only to make sure you didn't miss out on anything but also to have a clearer view of your financial situation of the month.
