I'm curious how other people manage their paychecks on payday. I have a routine which seems simple and straightforward to me, but other people might find overly complicated.
DH and I get paid on the same day, twice a month. Retirement contributions are already taken out of our checks pre-tax, so we never "see" that money. With the money that is direct deposited into our checking account I do the following:
(1) Transfer a set amount into our online checking account with is designated for fixed expenses. All regularly occurring bills get paid out of this account, such as the mortgage, utilities, memberships, insurance, childcare, etc. The amount that gets transferred is roughly 1/24 of what we spent on all these things in the previous year.
(2) Transfer a set amount into an educational account for the kids.
(3) Transfer set amounts into separate "short-term" savings accounts for car repairs, vacation, charitable donations, home repair/improvements, and health care. I pull from these accounts whenever we spend money on one of these things, but they all get something added each payday.
(4) Pay off the current balances on the credit cards (DH's, mine, Target), which contain all of our variable spending.
(5) If there's anything left over, it gets swept to one of our savings goals.
I have it set up so I can do this all in 15 minutes from my smartphone while laying in bed on payday morning.
Anyone else care to share their payday routine?
Do you have a payday routine?
February 20th, 2015 at 03:09 am
February 20th, 2015 at 04:14 am 1424405674
Open up YNAB and enter it as a transaction for the following month. If it's the first paycheck of the month - allocate to giving, rent, car insurance, 10% EF, 1/2 ROTH contribution. If it's the second paycheck of the month - 10% EF, 1/2 ROTH. The remainder stays unallocated until I get the various bills or spend money in various categories. Whatever is left at the end of the month goes to my EF. (all of the allocations are done for the following month - for example, I got paid today. Today's paycheck goes to March's budget. It was my second paycheck, so I allocated 10$ EF for March and the second half of the ROTH amount for March.)
This isn't the traditional way to use YNAB, but it is something I've started doing since January, and so far, I really like it. (traditional method has you pre-allocating every dollar for the following month)
February 20th, 2015 at 05:54 am 1424411677
I immediately call a board meeting. All the powerful mover and shakers are in attendance.
Then a beautiful woman dressed in a sassy pencil skirt saunters in and delivers suitcases of cash while I dine on goose pate and smoked Italian spiced sausage.
As I listen, my chief financial officer discusses the latest acquisition figures. The beautiful lady leans in close and says "Wake up dear"
Then I am immediately transported into my child polluted bed while a cat pushes my face off the pillow. The only positive is the beautiful cash lady seems to be my wife.
After we eat fruitoops we head to the bank as I have an island account (No non-branch access).
We withdrawal the expenses for the month and then put what's left into savings.
For just a brief moment in the morning I feel like a billionaire commanding his empire before I make Nutella sandwiches for lunch.
February 20th, 2015 at 06:50 am 1424415004
February 20th, 2015 at 01:51 pm 1424440265
February 20th, 2015 at 02:43 pm 1424443412
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February 20th, 2015 at 03:52 pm 1424447557
February 21st, 2015 at 06:18 pm 1424542698