This post is occurring on the 15th of the month. For those who are employed and get paid on a bi-monthly basis, today is most likely a payday for you. Congrats! Your first half of the month has been rewarded with a monetary settlement.
For me, today isn’t payday… It’s “Cash flow” day!
Many people look at payday as an opportunity to “go out for drinks with friends” or “buy that new sweater you have been wanting”. They made money, so now they spend it. Since I monitor my spending using a budgeting worksheet, I already know how much I can spend on things such as a new sweater, or drinks with friends in a given month.
Instead, view today as a day of positive cash flow. You got paid, probably in a bank account, so it is in essence liquid cash. This positive cash should first be used to pay expenses. It’s the middle of the month, so maybe you have a cable bill or a car payment. Focus on paying your necessary debts first before splurging on other activities.
Additionally, with my job, pre-taxed money is automatically put into my 401k, so I never even put this into the budget equation. My philosophy is, “If you don’t see it, you can’t spend it.”
Budgeting after college is essential to get on the right financial track for life. I have attached a free budget spreadsheet at the bottom of this post. Use it, make changes to it to fit your needs.
Today might be a literal payday for you, but it is both literally and figuratively a “Cash flow” day as well.
Budget Smart, Invest Wise!