When you cash an income check, do you immediately allocate? If not, how do you budget in the new month?
I got my income check on the 22nd of June, this month. It's the second to last Tuesday of the month, and right now, it's all in my "To Be Budgeted" box. I could do a few different things with it.
- Option One: Budget it out in June to prepare for July. I already paid for my rent, so my available rent balance is zero right now. I could add the same amount (980$) again, and have 980 available. Then in July, it'll tell me "Hey, don't add anything else to this, you're good." Right?
- Option Two: Budget it out in July. I hate doing this because I tend to lose track of where I put things. Even my scheduled transactions are hard to manage because they NEVER come through on the same day. Ever. No matter how much they say they will.
- Option Three: Distribute it to categories that are not currently full (house, 6 month emergency fund, etc.) or overflow it to categories that can always do with some growth (betterment/wealthfront investing (still haven't decided on one or the other, or long term generic savings).
- Option Four: Leave it in my To Be Budgeted box until July 1st.
Which of these do you guys usually do/recommend?
There's no mention of your income frequency, so I am making an assumption that you don't get paid once a month here.... What do you need the money to do before the next time you are paid? If you need it to spend, put it in categories.
If you need it to spend in June, put it in categories in June. If you need it to spend in July, put it in July so you don't accidentally spend it in June. You may need to do some of each.
Any amounts you don't need to spend before the next time you get paid should be used to fill up your True Expenses in order of priority.
Never leave money sitting in TBB.