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Thread: 1 month ahead budget?

  1. MilitarySOS Jewel
    Procella's Avatar
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    #1

    1 month ahead budget?

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    Please excuse any confusing description, I'm trying to describe something that isn't really fitting well in my brain.

    Currently DH and I get paid on the 1st and 15th. The current budget is broken into pay period sections. The money that comes in on the first covers all bills that come in between the 1st-15th. The pay checks on the 15th cover the 16th-end of month.

    From what I understand, if someone does a month ahead budget the pay from the 1st and 15th of May woud go into savings and then on June 1st get dumped into the checking to use for all of Junes bills.

    I don't understand why this is better. Is it a cushion for the third month? Does it not matter?

    If I moved money from savings to cover all of May today, and then put yesterday's pay and the 15ths pay in savings doesn't that mean I am tying up a few grand? I think that is where I am hung up on, why am I going to take a few grand and label it "May" instead of "New Windows".
  2. Quis custodiet ipsos custodes?
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    #2
    It sounds a lot like living on last month's paycheck ... instead of living paycheck to paycheck you do have a cushion in the account. I think of it as a buffer but I guess in a sense it is tying up a few grand. Like right now I have a month's expenses sitting in checking, but that makes me a lot more comfortable than spending each paycheck as soon as it comes in. That and my emergency fund is "tying up a few grand" but the alternative seems to be living paycheck to paycheck with zero cushion and I'm not comfortable with that.

    YNAB does a pretty good job of covering it I think:
    https://www.youneedabudget.com/method/rule-four
  3. "If you don't like my attitude, quit talking to me"
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    #3
    It is a bit confusing.

    I don't do a 'this pay check covers these bills'. well, with the exception of mortgage. It goes out on 1st and 15th no matter what so DH check is for that, but other than that, we just put our paychecks in when they come, I have a set amount that goes to savings, and the rest is used for bills whenever they come.

    There are 10 types of people in the world, those that understand binary and those that don't
  4. Senior Member
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    #4
    It's just a way of forced saving/cushion.
    Science always wins over bullshit. ~Dick Rutkowski
  5. MilitarySOS Jewel
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    #5
    Thanks everyone, I think I get it, but if I think too hard I confuse myself. It would just be a one time "expense" to jump ahead a month. Then the budget would change from a two-week period to once a month.

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