When you are paid once a month, you can set up all your bills to be taken out right after you get paid. That way, you won’t have to set aside money from each paycheck to cover your rent or mortgage, student loan payments, or other bills. In that way, it makes paying your bills a lot easier. However, it can be more difficult, because when you are paid once a month, it is easy to go through all of your other money quickly and leave you falling short at the end of each month. In this way, you’ll need to be much more disciplined with how you spend your money. Read on for tips on how to successfully budget when you get paid once a month. Most companies will allow you to set up a direct debit to pay your bills. It is easier to do this just once a month, and it saves you time since you are doing everything all together. However, it may be a bit more complicated with bills that aren’t a set amount, such as utility bills. Be sure to allow for fluctuations in these bills if you choose to set up a direct debit. Many utility companies will offer the option of paying a fixed, monthly amount, based on your anticipated annual usage. This way, you would pay more in lower usage months, and less in higher usage months, but the overall amount you would pay would remain constant and predictable. Check with your utility company to see if a monthly budget option is available to you. And if your bills are due at all different times of the month? Most companies are willing to work with you to change the due date, especially if you are setting up a direct debit. Call and ask to get your monthly due date changed. Keep in mind that after you pay all your bills, you should also be setting aside money each month into savings. These savings will help you stop living from paycheck to paycheck. Withdraw the money from your bank at the beginning of the month. Put the correct amount into each category or envelope. This system will stop you from blowing all of your money on eating out the first week since the categories are divided up already, and you know it’s time to stop spending in one category when you run out of money in that envelope. Set a limit for each week, and only take that amount with you when you go shopping. You can also make weekly envelopes for each spending category. This visual and tangible aspect is the best way to stop overspending and stay on track throughout the month. As you switch to cash for your entertainment, groceries, and clothing money, you will soon learn to stop overspending. It is important to stop spending once you run out of money. If you don’t, you could run up your credit card debt. While a cash-only budget can help with this, setting weekly limits can help as well. It is important to make sure that you don’t forget common budget categories. You can also look for new ways to save each month to help you stick to your spending limits. An emergency fund can help you handle those expenses without ruining your budget. When you only get paid once a month, it is even more important to have an emergency fund. An emergency can eat up all of your money at the beginning of the month and leave you struggling for the rest of it. Experts suggest having at least three to six months’ worth of living expenses in your emergency fund. Setting aside $50 a week for an emergency fund will give you a good start. You can also apply bonuses or tax refunds to build one up. Updated by Rachel Morgan Cautero.
