A flaw in my planning

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I have big ambitions for next month and this morning I started planning my money.

Planning is very important in managing money because without a plan you’re just going willy-nilly though your weeks and all of the sudden it’s the end of the month and you have no money or worse- you’re in the negative. As well, without a plan it’s easy to keep on saying yes to spending and getting side tracked from your goals.

So, this morning as I was going through my credit card statement and getting ready to pay it off, since I get paid tomorrow- and I realized two things: I feel like I’m rolling from one month’s debt into the next (more on that later). And that it’s hard to plan for a calendar month ie. 1-30 if you don’t get paid on those days. Some months I do, if the 15 and 30 falls on a weekday. More often then not I get paid with a few days still left in the month. I think this really is only a problem when you have run out of money from the current month. If you still have money to spend for the 3 or so days between getting paid and the actual end of the month, it’s no problem. You just leave your money there and go on with your life until the 1st rolls around and then you start the new month. BUT when you don’t have money as soon as the new money comes in you’re ready to spend it. So for this reason, I’m going to start planning my months as from the date of the paycheck- at least until I get to the point where I still have money left in my account.

 

Onto to the topic of this rolling from one month onto the next. I think the credit card is guilty for this happening. For one simple reason: when you have debit/cash you have to say no to buying things when you run out of money, but with credit you think I WILL have the money in a few days so it’s all good. I know lots of people are guilty of this mentality- myself included- and until I can change this way of thinking and change my habits with my credit card I am going to stop using it.

This is where having a few different banks comes handy. All my grocery money is going into one account and the rest stays where it is and that bank card gets left home. The “freeze your credit cards” concept comes into play. One other technique that I am going to use is to have a piece of paper in my wallet and have a running total of how much I have spent on each card. Annoying to do -but definitely keeps things in perspective.

What are your thoughts on the end of the month and gaping the bridge between two months?

-R.

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