Money disappears regularly. At least that’s the way it seems to you, but really it’s not disappearing. You’re spending it. Let’s say you make 2k a month and your expenses are 1.5k, in theory you should have $500 left over each month, but this rarely happens. Why? Because you are balance spending your money. Today’s Flip Your Finances segment is all about disappearing money and what you need to do about it. Watch the video below to hear today’s 10-minute challenges:
Today you have two challenges: save money on payday and save money the day before payday. First, on payday figure out how much you should have left at the end of your pay period and save half that amount on payday. This forces your hand a bit. If you remove the safety buffer in your checking account you will make smarter decisions the entire pay period. Secondly, the day before payday sweep the comfort out of your account. That $1,000 buffer you keep? It’s actually causing you to spend more freely. You don’t have to get rid of all of it, but move at least $750 of it to savings.
Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.