Budgeting...a word that most people do not understand nor do they know how to create one. One of the things that I learned early on in my back-to-college journey was to budget. For me setting a budget was not the hard part, it was sticking to it. But now I have a system in place and it not only works well, but I have never received and overdraft notice, I have never been late on a payment unless I simply forgot that today was the due date,
How does my budget work? Simply.
I work full-time and receive a paycheck every two weeks. I also receive rent money from the person who rents out an apartment in my house and all this rent goes against my mortgage payment. I also have a freelance job that requires me to set aside tax money from income. And last, but not least, I am a part-time student with loans. The student part is easy for the moment, everything is deferred. However, I make a $25 payment every two weeks to my Nelnet account.
So, let's talk about bills...gas, electric, Comcast, AT&T Wireless, mortgage, car payment, security for my house, Adobe Creative Cloud subscription, car insurance, video game subscription, additional money put into savings ($100/month) and one small credit card. Seems like a lot doesn't it? Since I am paid every two weeks, I deduct half a payment from each one of those bills from my checking account. Out of sight, out of mind. I highlight each bill in my check register as either Ahead or Paid. That way I always have extra money to do those things I enjoy doing...like movies, or eating out with friends or even shopping.
Like I said, I have never had an overdraft and I certainly do not plan on having one in the future.