Do you ever find yourself running out of money before the end of the month?
If so, paying yourself weekly could be worth a try!
This is a technique I have followed for almost four years and has made a noticeable difference to my budget and my spending habits. By using this approach, I still have money left in the week leading up to payday.
No more running out of cash with two weeks to go!
I am paid monthly so my budget is built on a full month's worth of expenses.
For all the cash envelope budget categories that I regularly make purchases from (for example my treat yo'self pot, fuel and groceries), I break my total monthly budget amount down into weekly amounts.
Each Friday, I pay myself weekly.
I move one week's worth of my general spending money into my current account, and this is what I have to use for the week.
For example, my treat yo'self budget for the month may be £250. I would therefore divide this by four, and move £62.50 into my current account to last me the week, leaving the rest of my budget untouched in its pot.
This way, even if I do have a spendy week and use up my budget over a busy weekend, I still only have a few days left before I can access my budget again! (Note - not reaching for it early if you've overspent can require some self discipline!)
I choose a Friday to pay myself because it means I always have money available on weekends if I need it, as I work full time in the week so tend to spend more on weekends than I do on weekdays, but you could choose any day which works best for you and your lifestyle!
I think the mindset of knowing you that if you run out, you only need to wait a few days to have available cash makes such a difference.
If you use one large pot instead and you overspend and run out of money so early on in the month, it can be much easier to think "screw the budget" and mindlessly reach into the emergency fund or for the credit card, impacting any progress you may have made toward your goals on payday.
But knowing you only need to wait a few days can mean you still behave in a much more controlled and measured way when it comes to spending, and leaves the rest of your budget and goals in tact!
It goes without saying that any money I have leftover when it comes to my next "pay day" goes straight into my savings for my big goals.
This is also a way I challenge myself to see if I can save even more than I budgeted in the month!
Is this a tactic that works for you? Let me know if you've tried it!