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Trying the Month Ahead Method

July 15th, 2010 at 04:12 pm

I've decided that starting 1 Aug, I will try the month ahead method meaning that the paycheck that I get for 1 Aug won't actually be spent until September. I've been reading alot about this and it does sound easier to manage. Especially seeing how I wouldn't have to time when automatic bills/savings are completed.

The budget software, YNAB(You Need A Budget) that I use is actually founded on this principal but I just never did it seeing how I'm paid on the 1st and 15th.

I figured this would also be good retirement prep practice for me. When I retire from the military in 2012, I will only be paid once a month.

Posted in Uncategorized | 9 Comments »

9 Responses to “Trying the Month Ahead Method”

  1. momcents Says:
    July 15th, 2010 at 05:19 pm 1279214356
    1279214356

    I've found the concept behind the YNAB somewhat confusing when looking at it. How does one move away from being paycheck-to-paycheck, and when does August's pay cover September's bills come into effect?

  2. north georgia gal Says:
    July 15th, 2010 at 05:22 pm 1279214532
    1279214532

    I am confused by this...what about the bills that are due in August? Are you going to skip them?

  3. Ladya70 Says:
    July 15th, 2010 at 05:26 pm 1279214788
    1279214788

    How the YNAB method work is one or two ways. YNAB calls it a "buffer" meaning you either save until you have one month of living expenses or if you're like me, I already have my buffer so I don't have to save for it. So starting 1 Aug, I will use my buffer to pay my monthly expenses instead of my paycheck. So when I get paid on the 1st and 15th, my paychecks will just sit in my account until I need the money which will be September since I'm paying all of August bills will my buffer. Does that make sense?

  4. Miz Pat Says:
    July 15th, 2010 at 06:09 pm 1279217340
    1279217340

    I'm kind of doing something similar, without using the program. I put estimated hold in my checking for upcoming bills (some you know, some you worry about).

    I already have my August mortgage payment paid and all my july invoices. My next check, which will be july 22 will go toward August bills and September's mortgage. Because you usually have 2 checks extra a year, eventually you get ahead on everything.

  5. creditcardfree Says:
    July 15th, 2010 at 08:39 pm 1279226391
    1279226391

    Good luck! Let us know how it works for you.

  6. skydivingchic Says:
    July 15th, 2010 at 11:46 pm 1279237604
    1279237604

    Good luck! I have been doing this for several years now. After I started using Mvelopes, my first goal was to pay off the CCs. After that, I built up my 1 month buffer and haven't looked back. It certainly smooths cash flow out tremendously.

  7. Homebody Says:
    July 16th, 2010 at 12:10 am 1279239022
    1279239022

    I used YNAB for a while, but I just cannot keep up on both Quicken (need reports for taxes) and YNAB, but I do love the idea of being a month ahead. My sister and her husband have always done it this way, even when they were very poor. They put all earnings into savings and then on the first of the month would transfer for bills and food, etc.

  8. Frugaltexan75 Says:
    July 16th, 2010 at 03:32 am 1279251155
    1279251155

    When I have actual income, this is how I do it too. I love living a month behind, and I love YNAB! Smile

  9. Jerry Says:
    July 17th, 2010 at 09:32 am 1279359144
    1279359144

    I like the buffer idea, and I think it has to lead to a little bit of security in knowing that you are "ahead." Some people I have read about have a six month EF to act as insurance for staying on top of things. Similar concept. Good luck with it!
    Jerry

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