Friday, February 1, 2013

Pay Day - Let's Talk Some More

Pay-Day - Let's Talk Some More



I told you when I posted about Pay Day and Paying Yourself that I would revisit this subject to talk about other line items and how you can potentially Pay yourself even more by your next Pay Day.  And before I go further, I want to say "Thank you" for the great e-mail comments and Facebook messages I received from that post.  I enjoyed the comments and yes I am a "KISS" method person.  Keep It Simple Stupid.  If you'd like to e-mail me with a question or a comment, please feel free to do so.  E-mail is at the bottom under my name.

Now let's talk about a couple of my entries that I call "Variables":  Gasoline, Groceries and Dog Food (yes I have one for dog food)

Gasoline

Sort of hard to budget for this when the prices of gas go up and down right?  Trust me, it's doable.  When I first started doing my budget and got serious about it, I sat down with my check book register and added up all of my gas purchases for one year and then I divided the total by 12 to get my average monthly gas expenditure.  I then divided that by 2 to get my pay check expenditure.  The total average was $70.00/month so my per pay check average was $35.00.  So I know that every payday I have $35.00 allowed for gasoline.   

Then I took, it  a step further.  I make it a point to fill up my car every payday or within 24 hours of payday.  (I filled up on Thursday.)  It's a bill that I know I am going to "Have to" pay right?  I just get it out of the way.  But would you believe that it only cost me $21.00 this time to fill up.  I hadn't really gone anywhere out of the way during the last pay period other than to work and back and the normal stores I stop at on the way home so I still had close to 1/2 tank left.  Woo Hoo!  This doesn't happen every month so I was ever so excited!

So now I have an extra $14.00 to maybe go out to eat on or purchase those cute little blingy items that have been calling my name or buy me some new Fu Fu spray or whatever my heart desires right?  Don't you know me by now?  The answer would be no.

Remember when I told you that I have "X" dollars direct deposited into my savings every pay period and then I transfer an additional $50.00 each pay day as soon as I receive my check stub.  Well, I saved $14.00 on gas this pay period so I now have $14.00 extra in my expected left over amount.  Happy Dance Happy Dance.  Now I can leave it in there and see whether I make it to the next pay period without spending it........OR......I can hop online do another little transfer for $14.00 to my savings.  Doesn't cost me anything to do a transfer from account to account with my bank.  And, if I go ahead and transfer the money now,   it won't be there to tempt me to spend it.

Are you starting to see the picture here? 

Dog Food

I do the exact same thing with my Dog Food line item.  I have $75.00 budgeted for dog food and treats every pay day.  Have you ever met my Shepherd?  He's a beast and will only eat wet dog food.  Lucky me.  Fortunately for me, I know how many cans of dog food he and the little fella eat a day and how many bags of dog treats that I need to buy to last until next pay day.  I apply the same principal of doing it all at once.  So within 24 to 48 hours of getting paid I will be at Wally World buying the dog food and dog treats to last till next pay day.  (Note:  When I purchase the dog food and treats, I do not purchase anything else in that visit - no groceries, no extras, etc.)  Now, if I happen to get lucky and find some coupons for the dog food or treats they eat, then I ABSOLUTELY use them and save money on that line item.  Last pay period I had a couple of coupons so rather than paying the $75.00 I only paid $61.00 which means I added another $14.00 to the "Left Over" amount which also means that I deposited an additional $14.00 into my savings for the pay period.  Yea Poochie!!!!

Is the picture getting clearer now?




In order to save money you need to be a "Watch Dog  over each of your line items that are potential variables.  The mortgage payment each month is not a variable in that it shouldn't change.  How much you spend each month on groceries and gas, etc. could very easily change and that makes it a variable. 

Savings on variables can definitely add up.

Next time we'll talk about the "Left Over" line item.

Hugs,



r.gullett@insightbb.com

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