I get paid monthly, not bi-weekly or weekly. I feel like it’s much easier to manage your finances without completely living from paycheck to paycheck when you’re being paid weekly or r bi-weekly. When you get paid monthly it’s much more difficult to make that money stretch.
First of all just so you can understand and follow along. I have a trust that pays for any Necessities I need that are not covered by Medicaid or Medicare. For instance… My daytime caregivers are covered by Medicaid and Medicare. However they will not cover my nighttime caregivers. That being said just my nighttime caregivers alone costs over $50,000 that’s before the trust pays the payroll company to manage payroll and before any kind of overtime. Not to mention the trust pays for much more than just that. For myself though and my kids of course, I get disability benefits to help me get through each month that pay all my other bills. Even if I didn’t have any bills my Social Security pays me just over $1,500 a month. That being said even if I wanted to start putting my own money into the trust the amount I would be able to pay is practically meaningless because I can only afford to put in such a little amount compared to what The Trusted is paying for. It doesn’t even come close to fixing the problems.
How I’ve been able to manage my social security income and make it last month to month is by using autopay to pay my bills or just straight up paying them early. Either way, I have it set up so that within 5 days after I get paid, all of my financial responsibilities have been taken care of and I know that the money I have left is not accounted for and can be used for other things. Such as trying to pay down my debt as quick as possible because I am trying to start an IT company with my sister-in-law and if we’re going to get a business loan my credit needs to be a little bit better. Your bills stack up quick when you only make $1,500 a month and your washer and dryer go out or for example your children need to go clothes shopping because we’re starting a new season and they’re growing. I tell you one thing it adds up quick. I’ve had to fall back on credit cards to keep my head above water and over the last six seven years it just keeps getting deeper and deeper. Right now I’m trying to be super frugal and every extra dollar I have is going towards that debt. It’s very important to me that I set up this IT company with my sister-in-law and hopes to create an income as well. Anyhow back on topic, the idea is that you pay your bills as soon as your check hits so that you know your responsibilities are taken care of and the water is not going to get shut off or the electricity. Now that you know your priorities are taking care of, for now you can kick back and relax. The most important piece of advice I can give you is if you have children you have to leave a cushion of cash to make sure that if they need something they have it. I am currently breaking that rule because I just had to take out a loan to get a brand new washer and dryer. I would have settled for a used set but I can’t be worrying about paying to fix them all the time or something, I had to know they were reliable and I could depend on them to work. As a single father you simply just don’t have time for nonsense. That being said though I would never spend my last dollars on anything if it meant my child had to miss out on something they need or a activity they love enjoying but cannot do often. I don’t make a single decision ever without stopping to think about how it will affect them first. Let’s face it, they get A’s and B’s, they take good care of their dad, and they do their chores when they are asked… They deserve to go let loose at the trampoline park once in awhile. I am not afraid to go without something to put a smile on their face. I firmly believe your kids are an exception and you should never be afraid to spend money on your child within reason. In other words they don’t need $100 pairs of shoes or top of the line clothing brands. And if you have a habit like cigarettes or drinking, they should not have to go without so that you can support your habit.
Anytime, and I mean anytime, you get any sort of extra cash, put it towards your debt or towards your savings for your next power bill water bill or credit card debt. If you only work one job today find a secondary job and live off the first jobs income and pretend like you never even work that second job. Put all the income from your second job in an envelope… One day you’ll look in it and you’ll have 10 grand saved up and be super super stoked. Anyhow let me know what you think about my thoughts on financial responsibilities. If you do it my way, well, at least everything’s paid and you don’t have to stress of being behind.
If you’re young and just starting out or you simply just don’t have any debt, You can prevent ever getting into debt simply by putting $100 out of every paycheck into an envelope. Tell yourself you may want this but you don’t need it. Make yourself go without things you don’t absolutely need. Live like you’re broke and put everything away. Before you know it you’ll have a few thousand dollars saved up and all your bills will be paid.
Uncle Donkeys Tales 