Do you know how much money you have to spend freely at any given moment? I have an idea but if I happen to forget a bill that’s due then I might spend money that’s not available. A little while back I was introduced to a little trick when it comes to managing your money by my that has helped her know just how much money she has for her day to day spending. Pay your bills before you spend money on anything else. It’s a very logical approach but one that I overlooked for years as I was struggling with my finances.
Paying your bills first is a great way to help you live below your means. The object is to take all of your bills that are due when you get your pay take pay all of the bills you have and pay them before you spend any of your money. By doing this you end up ensuring that your bills are paid on time and you’re only left with money that is spendable. Coupled with some basic budgeting and it can help you live below your means.
If all you have left after your bills are paid is $500before your next pay you know that you can’t spend more than this and you don’t have to worry about bills coming out of your account. Getting into the habit of taking this approach may take a little time but it will prevent you from trying to juggle your debts. If you happen to be deep in debt and are struggling to make ends meet this can give you an idea of how much or how little money is left over.
Another benefit to taking this approach is that your bills are always paid before their due date and you continue to build a positive credit rating. I know that for many this is a mute point but when you’re in debt and juggling debt and spending it’s a nagging thought in the back of the mind. I know it was for me when was really struggling financially.
Finally when you know how much money you have to that is spendable you don’t have to worry about your spending as much. Being able to have money for the day to day spending is all you have to worry about which should free up any potential remorse or concern when it comes to spending money on an unneeded purchase.
The biggest thing that comes from paying your bills first isyou increase your peace of mind about your finances and budget. Personally I’mstill getting into the habit of doing this but it really makes a differencewhen it comes to knowing how much money you have for incidental spending.