When was the last time you had a three-pay month?

What did you do with the extra money?

moneySo often, it just goes into the abyss of day-to-day living, paying off debt and “honey, let’s go out for dinner”, or it pays down the over-spending that has accumulated on the credit card or line of credit.  What if there was a different way?

We generally don’t work harder or save more to get out of debt.  Yes, I said it, because it is true.  We talk a good talk, but at the end of the day, we are much more interested in having new stuff and fun experiences than those responsible goals.

But, what if we hid our responsible goals like getting out of debt and saving for retirement into our day-to-day plan?

Imagine that you have a game plan for your day-to-day money where you are confidently and comfortably living within your means.  You know how you will cover the irregular expenses and the “life happens” stuff.  You are confident that the money you make month to month is covering your lifestyle, saving towards your retirement and paying down your debt.  Nice!

husbandwifepiggybankNow, what do you do when that extra money comes in?  Not only will you notice it, because it truly is extra, but you can allocate it towards those fun goals that make life extra special.  Top up your vacation account, buy a great new pair of boots, take your honey out for dinner, or add it to the cottage savings account.

Take a moment to add up what extra money you would have if your life was covered by your regular pay-cheque.

Example: John and Sue Sample make $120,000 and $80,000 respectively.  They are both paid bi-weekly and get two three-pay months per year.  Their mortgage payments match John’s pay schedule.  Sue receives a $5,000 bonus and they each get a tax return.

Note: Other extra income may also include raises, gifts overtime, and additional take-home pay when CPP and EI contributions are complete for the year.

 

Example

Note: Other extra income may also include raises, gifts overtime, and additional take-home pay when CPP and EI contributions are complete for the year.

By planning for their day-to-day lives with their regular income, the extra $19,000 can be directed straight to their goals.

Woo hoo!  Imagine what you could do with that!

Have I got your attention?  Click on www.schedulewithkaren.com to chat about how to free up your extra money!

Talk soon –

Karen

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