Teacher Summer Fund?
So I am a 10 month employee. I have a little bit of income come in July, but for all intents and purposes, I do not get paid July or August. Currently, I have been stashing away into a savings category for July that I can release to be budgeted. It is helping me deliberately put away for summer when I can release that money to be budgeted like a "paycheck."
Does this make sense? Should I just instead release the money and budget it in the future now?
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In retrospect this doesn't make sense. Because if I'm truly living on last month's money and I only have to get through August pay-checkless, than releasing the money is no different than budgeting it now.
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Sky Blue Cornet But if you're a month ahead then the months you will not have money for just shift to August and September (you're still only getting paid 10 months a year, that doesn't change). You still need to save up 2 months worth in 10 months, or 20% of each month's income, whether by budgeting ahead or by saving in a category.
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I am a school librarian and I do this the same way. I have a “summer money” category and I put $300 in it from each paycheck. It’s actially also a savings account I have so it gets better interest. Come summer, I pay myself from my savings into my checking on each payday, and then use that “paycheck” to budget as I normally would .
I actually did the variable spending online class and this is what YNAB recommended I do.
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I would go with a category, that just makes more sense to me. My job pays me over 12 months, they used to let us choose 12 or 10 months, but that changed about 8 years ago.
