Money management technique

[Eric Tarpall]

Do you keep running out of money before your next paycheck arrives? I have a solution but it requires some discipline. Lets say that you have a thousand dollars to spend each month. What I would do is divide that by thirty. That's 33,33 dollars per day. That's your daily spending limit. And you can spend more than that but only if you have money left from previous days. You can prevent yourself from spending more than your daily amount by putting your paycheck on your savings account. And transfer the daily amount to your wallet every morning. 

Edited November 19, 2018 by Eric Tarpall

[Enizeo]

Alternative model that I use:
1. Make a list of all your incomes that you have each month.
2. Look at your bank statements from the last few months to see what you are spending. Estimate what you spend how much on (doesn't need to be super precise at this stage).
3. Create a reasonable budget for each category. Here you can have a certain amount you want for savings for example.
4. You don't need to be incredibly precise about what you spend, just look at the bank statements, see if you are roughly on budget and adjust the budgets if necessary.

After you have done this for let's say half a year, you have a pretty clear idea about how you spend money. At this point the problem has likely solved itself because you have been more mindful about you financial situation. If not, you can see problems more clearly and make strategic cuts where it hurts the least. You can also estimate how much you can save quite well. Transfer that amount to another account in the beginning of the month.

I could go on, but you get the idea. I study business and worked in financial services for 2.5 years, so maybe this approach is to technical for some people to use. Just throwing it in here, see if anyone resonates

Also, welcome to the forum

[Eric Tarpall]

5 minutes ago, Enizeo said:

Also, welcome to the forum

Thank you Your model is pretty good. I might give it a go.