One Month Ahead Of Bills Challange
Getting one month ahead of bills doesn’t mean you are paying your bills a month early. It means you have the money you need to pay your bills ahead of time, but you are not necessarily doing that. But it is nice to have the surplus cash.
Suppose you are struggling to pay your bills on time. Or you are tired of waiting to get paid to pay your bills. The one-month-ahead-of-bills challenge is right for you.
You’ll learn how to save money even when you don’t think you have any to save and reduce your financial stress. You’ll know if you have a spending problem, and you’ll learn how to time your goal.
When I got a month ahead of my bills, I realized it was a mini-emergency account. You have extra money in case something goes wrong.
To learn more about how to get one month ahead of bills, read this article and take the one month ahead of bills challenge.
One Month Ahead Of Bills Challenge
The one-month ahead-of-bills challenge is a real game changer because getting one month ahead of your bills proves you can save money and have surplus cash.
Benefits Of Getting One Month Ahead Of Your Bills
Small Emergency Fund
Being one month ahead of bills means you have extra cash, and if something unexpected should come up, you have the money to cover it.
In many ways, it’s a mini emergency fund.
You’re Only Spending Money You Already Have
It’s never a good practice to spend money you don’t have.
Many people habitually put expenses on their credit cards and pay them off at the end of the month. They usually do this to collect reward points. Or because it is faster and easier.
The problem with paying your bills like this is you pay last month’s living expenses with this month’s pay, which puts you a month behind.
If you lose your job, you could have a real problem.
If you were a month ahead of your bills, you would have the money somewhere safe. You could still use your paycheck to pay your bills when you get paid, and you have next month’s bills covered before the month begins.
Reduces Financial Stress
Knowing you have your bills covered before they are due is incredible. If something happens, you have thirty days to make plans or necessary adjustments before there is a negative impact on your lifestyle.
Being one month ahead of your bills does have its perks.
How To Get A Month Ahead
Create A Monthly Budget
A monthly budget is the best to work with because most bills are sent at the end of the month and are due the next month.
When you make your budget be mindful of the amounts, you have allocated for each category.
Make sure your budget works.
As you live with your new budget, be cautious to stay within the amount in any category. Most people think of a budget as a suggestion, but it’s a road map telling you and your money where to go and how much you have left in your categories.
You should do what you can to save as you shop and buy gas. You should turn out the lights at home when not in use. Look for other ways to save on utilities.
Avoid money-consuming events when possible. Every little bit helps.
Most budgets will have a little money left over at the end of the month. The amount of money you have left over should be put aside to get one month ahead of your bills.
A little here and a little there, it adds up.
What If You Are Living Paycheck To Paycheck?
Do the above. Create a monthly budget. And live within the budget. Because you live paycheck to paycheck, you will need to increase your income.
You can get a second job or start a side gig. Save the money you earn so you can get a month ahead of your bills.
Use Any Cash Windfalls To Get One Month Ahead Of Your Bills
We usually think of cash windfalls as vast amounts of money. But it doesn’t need to be a large amount of money. Any extra money you come across, like a tax return, over time, money from a side gig, or anywhere else. Set it aside to get one month ahead of your bills.
Getting One Month Ahead While Paying Off Debt
Getting one month ahead of your bills is a challenge, and so is debt repayment.
If you are paying off debt, consider getting a month ahead of your bills because you are likely funneling extra money into your becoming debt-free plan. This is wise, but you probably don’t have any savings, which is not good. Think about it. What if something happens, and you need to use the money from your getting debt-free plan?
All of a sudden, you are not getting debt free anymore.
But if you have some or all of the money you need to be a month ahead of bills, you have some money to use when things go wrong.
Having the extra cash can serve as a mini emergency fund.
BONUS TIP: Use A Spending Journal
A spending journal is where you log why and how much. And which category you took the money from? It will also tell you the method of payment. Was it cash, credit card, debit card, or loan? A spending journal is invaluable when getting a month ahead of your bills.
Update it after every expenditure; otherwise, you may forget an expense.
A spending journal keeps track of your spending and will help you find money leaks.
You Don’t Have To Time Your Bills To Your Paycheck
Most people want to pay their bills on time or early. If you are a month ahead of your bills, it’s no problem because you have the money before the bill is due. No more waiting until you get paid.
Time Your Goal
Like any other challenge, you need to set a goal to determine when you have succeeded.
Setting a goal of getting a month ahead of your bills is relatively easy.
When you want to be a month ahead of your bills, how many paydays do you have in between?
How much do you need to be a month ahead of your bills?
Now divide the amount you need by the number of paydays, and that’s the amount you need to deposit each payday.
I know it sounds simple, and it is, but the challenge is to deposit that amount each payday.
You may need to work overtime, get a second job, start a side gig, or sell your stuff, but you can do it.
Conclusion
Getting one month ahead of the bills challenge is a worthy endeavor. Not only are you financially stronger, but you have less financial stress.