u/StrangerFit7296

Figured this might be uncommon so I’m sharing in case it’s helpful.

Note: This will probably be more useful for those who use budgeting apps/zero-based budgeting/envelope budgeting methods.

We’ve been following a certain budgeting method for a while now, and there’s one tip they share that’s worked well for us: “Get a month ahead.”

Getting a month ahead = when a new month arrives, you have all the money available to pay all your expenses for the entire month.

Basically, you save and allocate 1-month’s worth of all expenses as a buffer to remove yourself from the paycheck-to-paycheck cycle.

This is what we usually see: People allocate paychecks according to bill due dates, e.g., if the electricity bill is due by the 23rd, then the paycheck received on the 15th will be used to settle the payment.

When you’re “a month ahead,” here’s what it looks like:
- By August 1, I already have all of the money to cover all of the bills for the month, so I’ll just need to settle payments as bill due dates come up.
- With August already prepared and set as early as August 1, I can look farther into the future and plan ahead for September.
- All of my paychecks for August now go to funding things for September. As best practice, I can store this in an HYSA.
- I don’t need to be worrying about paycheck<>payment timing. I’m able to create more distance/breathing room between my paycheck and any decisions I need to make around my budget if/when I have to.

This advice may seem small (I thought so at first ngl), but in practice, and as a person who’s generally anxious, I was extremely surprised how this became one of those things that helped put me at ease.

“Isn’t this technically what an emergency fund is for?”
— Sure, it sounds similar, BUT what significantly reduced my anxiety is ensuring I actually assign better jobs to our money.

We no longer have just this vague pool of funds ready for any and all emergencies.

Outside of a “month ahead” fund, we now have: an income replacement fund that should be at least 3-6mos worth of total income, a home repair fund if anything breaks, same with car repair and even for tech/gadgets, family emergencies, vet-related expenses, etc etc. So, for example, knock on wood, 3 unexpected things happen at the same time, there are funds appropriated—no confusion, way less financial stress for potentially stressful situations.

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Would love to hear it: What’s an uncommon financial advice you can share?

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ETA: Here’s how we started: https://www.reddit.com/r/adultingph/s/QsqGFrGgZg

I work from home and have felt like I was too much of a hermit last year. I recently added a “connecting with friends” category to reconnect with people I haven’t seen in a while and intentionally spend more time with them.

Curious to hear how others have adjusted their budgets to match what matters to them—what was your goal and how did it change your budget or spending?