Plan Your Paycheck

Your paycheck is a starting point for making a budget. Set aside 15 minutes to review your income and expenses. This way you can plan your paycheck.

• Time: 15 min
• Tools: Printable Calendar, Pen, List of Income and Expenses

Begin by telling your money what to do. Write down how much money you currently have and what you want that money to do, before your next paycheck. I want my money to ___________ before my next payday. This is your starting point. Now let’s take it further.

List out your income and expenses. Make sure to include any incidental expenses that are coming up this month.  Is there a holiday party, a birthday, or perhaps sports fees? Write it all down.  You will also want to factor in money for gas and groceriesgroceries.

Print a calendar and highlight your paydays.  Note how much money you are expecting to receive on each payday.  Then go back to your list and write out all of your expenses as well as the date they are due.

Put it down on paper.  Write out which paycheck is going to cover each expense.   If you have 2 paychecks coming into the household, use a table with 2 columns.  The goal is to assign expenses to each payday check. For example:

Now that you have a plan for your paychecks, you can continue to repeat this process. As you go you will feel more empowered and feel greater peace of mind.

If all of your bills are planned for and there’s extra money left over that’s great.  Give that money a purpose.  Here’s just a few ways you can put your extra income to work:

• Open a savings accountsavings account for a designated purchase.
• Make an extra payment on your debt.
• Save for periodic expenses that are on the horizon, such as a birthday, anniversary, sports fees or back to school expensesback to school expenses.
• Contribute to your retirement accountretirement account.

That’s it!  By following these steps each month, you’ll have a better picture of where your money is going and when to anticipate bills and other expenses.