How Do You Budget When Your Paychecks Are All Over the Place? | 459

0:00When we work with clients, this is what happens. They're down to the wire a little bit on their monthly budget, but all of these things happen. And that's when we need to look at the savings bucket and say, can we actually afford this? Or does somebody have to go get a second job to afford the kids activities? Like it's almost like kids activities, nothing else, maybe travel for maybe, but mostly kids activities. And that's where you really need to be able to look at it because that really could be the reason that you got into debt. That could be the reason that you were using debt to get through because you can't actually afford the lifestyle.

0:29So things have to change. Either we have to get a side hustle until we pay off debt, or maybe need to take that restaurant budget down a little bit. Or maybe the kids, our kids' ages, maybe they can start to pay for some of their own stuff. We'll do some of it. You do the rest. There's different options there. But really, the point of this is to see, if I do what Vanessa said, I list everything out that the kids want to do every year, and it's$600 a month to fund it. Do you make good money but have nothing to show for it? Are you tired of living paycheck to paycheck? Do you have big dreams for your financial future?

1:01Do you want to get debt-free, but you don't want to live on beans and rice? Or you don't want to give up those pumpkin spice lattes? Hey, it's okay if you don't already know how to budget, or if you're using credit cards to get through the month. Hey, it's okay if you want to seem like you have your finances all together, or you're not on the same page with your spouse when it comes to finances. We know what you're doing probably isn't working, but guess what? You're in the right place. We're Shana and Vanessa. We're best friends, business partners, and master financial coaches trained by Dave Ramsey.

1:31We've been in business since 2019, helping hundreds of amazing people like you create budgets, get out of debt, stop living paycheck to paycheck, and know exactly what to do with their money. In this podcast, we'll share with you everything we know plus everything we're working on with our clients so that you have the best chance at reaching your financial goals. We want to help you take the guesswork out of your budget, improve your marriages, and even bring your kids in on the conversation. We can help you no matter where you're at, whether you're the single mom who's never had$500 in her savings account or the millionaire who's paid off four real estate mortgages.

2:03And we're not gonna shy away from the tough love. We'll tell you what you need to hear and encourage you at the same time. This is the Financial Coaching for Women podcast.

2:15Okay, Addie, we are so excited to have you on Financial Coaching for Women. I'm Shana, she's Vanessa. We're excited to talk to you and see how we can help. Yeah, great. Thanks for having me on today. I'm super excited. I spent a lot of time listening to your podcast and I feel like I've learned a lot. I have purchased your budget system, which is super helpful, but I do have some questions. This is like my third month or so using it. And I can say that we haven't used any credit cards in three months. So we're super excited about that. We need to like keep a tally on our board at home so we can keep pumped about it.

2:53So anyway, what I am confused about sometimes is the way our paychecks are scheduled is they're not like every week they're on certain dates. So like my paychecks are the 6th and 21st of the month and his are the 11th and 26th. And my husband gets paid more than I do. And so at first, this summer, it was like, I was trying to make everything stretch out. Like I used his checks just for all of our bills. And then my checks were mostly for spending cash or spending digital. And then a little bit, I had to pull a little bit from his check to finish out that spending category because mine's just not enough to get us all the way through.

3:36But then in August and maybe even in July, I tried to do like a weekly thing because we both got paid. It's just seemed every week, but then it just seemed like we still didn't have enough. And I felt like I was living paycheck to paycheck that way too. So I'm just trying to figure out the balance with what to do with their, with the checks. A couple of questions. Okay. Well, how do you, what's your pay scale? Like as far as like your pay cycle as a teacher, are you on a 12 month pay cycle or 10? 12. Okay. Perfect. Okay. That It solves that problem. No need for a summer fund for you. Okay. And then you said you get paid on specific days, right?

4:16And so does he. So it doesn't matter. All right. Are y 'all a paycheck ahead yet or no? Yeah. So I wanted to mention that too. We are a paycheck ahead. We're not a whole month ahead of paychecks, but we're one paycheck ahead. Okay. So for August specifically, you got paid on the 6th and what was the other day? 21st. And he gets paid on the 26th, right? Yeah. He got paid yesterday. Is that going September? Yes. So everything that's due like the front half of September is already accounted for to be paid. So your paycheck on the 21st and his paycheck on the 26th, both should be ready for September.

4:55Yes. But what I already, what I did with the 21st is basically that was just getting us through the week for spending. so that's not real but that's actually so your budget when you're budgeting a paycheck ahead you're always budgeting for the upcoming month's bills so let's use august for an example that paycheck coming in on the 21st and the 26th that is to cover bills on september 1st through september 30th but also your spending start whatever cycle you're using it so if it was you're going off of your pay cycle for spending, then it would start on the 21st. If you were going off his, then his would start on the 27th kind of thing.

5:36If you wanted to do weekly spending, then it would start whatever that Friday is. So your spending is always coming out based on whatever cycle or system you've decided to use. But remember that it's only paying for bills in the upcoming months. So you're doing it right as far as saving it for bills, but you started your spending. Does that make sense? Okay. Yeah. I have more questions, but go ahead. I know you have some. Okay. And then you were talking about unsure as how to take out the money as far as spending. You felt like you were getting paycheck to paycheck with you guys getting paid on specific days.

6:09There's kind of multiple ways that you can do this. You can pay yourself out once a month on the 1st of September. You have all that money for the rest of the month. Okay. Which is, which some people like, I hate it, but some people like that. You can do the weekly thing where it's like every Friday, every Monday, whatever day it is, like you decide what that looks like. And then you just have to adjust your budget, whether it's a five week month or a four week month. So you'll never have a six week budget. If you do that, you'll only have a five week budget. Just if however that falls or you can do it on either yours or his pay cycle, pick one.

6:45And it doesn't matter which one And you decide because all the money needs to be coming into the bill section. So you alluded at the beginning that you were using like half your paycheck for spending and some of whatever. It doesn't matter. Like all of it pools in the bill's account. It doesn't matter whose money is pulling from what. And I would pick a pay cycle. His. Yeah, sure. His. We'll say his. And you're using that to fund the spending. But it doesn't mean his paycheck is going towards the spending. It's just saying we're using that pay cycle to fund the spending every whatever, 11th and 27th, whatever day that is.

7:19Yeah. So you said to use his, or you were using his, because he gets, he makes a little bit more, but the problem, what you, I guess what you're saying is you are having bills come out and it's getting really tight between certain pay periods. And you're not super confident on the spending transfers and all that kind of stuff. If you, there's a couple of ways to solve this. You can add in a buffer to your bills account, which if you had, you probably would have already done it. Right. Maybe not, but some ways that people do is they just add half a paycheck or whatever into their bills account.

7:49And it's always there. They know it's always rolling forward. Another way to do that. I've had clients like wait to pay this month bills, get a grace period to pay it later in the month. And then for you guys, for example, your, your 26th, you'll be able to be ahead for the next month. It'll, because you paid that it'll be able to even out by the next pay cycles that everything drops in your bills account. Another way that people do it is if you have a car payment or something like that, if you don't have a full-time savings, like maybe one month we can see if we can defer the car payment. And that way our bills, we can get ahead.

8:21Like we are a paycheck ahead, but we need to get enough ahead to where the bills has enough money in there that we can transfer those transfers anytime. And we don't have to feel that tightness because, and that's what I wanted to ask you. You said it's not, it feels like it's not enough. What did you mean when you said that? Okay, hold on. Let me write what you just said. Okay. Sorry. No, that's okay. So I guess what it is, we can do a little bit of that saying where you rob Peter to pay Paul sometimes. It gets confusing too. Like my kids have expenses and I do have a bucket for that, a section for that, but there's something that comes up.

8:56It seems like always beginning of the school year. Now there's school pictures. They're both in cross country. Now they're going to join art club. We want to do, I have a family fund. We do some envelopes a little bit. We also do digital, but we do envelopes. And it just seems like sometimes I rob from the envelopes so I could do restaurant because maybe we overspent. So I guess it's just more of a habit that I need to change a little bit. When did you buy the system? When did you? Yes. I started in June. Yeah. So again, this is, we just got off a free call with another fun friend and it was, you're new to it.

9:29So next year, what did you say? I lost count. All of those things. You can have to set aside exactly what you need for in your kid's savings bucket this year right now. And so that's making it feel like you're not doing it right. But it's just that's the nature of the process. We've got to get if you can get through a year, you'll get really good for the most part. They'll still throw curveballs at you. I was going to be cross. We're going to do this other thing or whatever. But you'll have to be able to plan for it. You just didn't. This is your first fall on the budget system. Yeah. And so if you have the system, you have access to your portal, which gives you all the videos that really explain how to use each tab in there.

10:09And one of the ones you probably need to dive deep into is the savings, yeah, savings bucket tracker and print it out. Everything prints on one page. You worked really hard to make that happen. So it's so easy. Print that savings bucket tracker out, lay it on the counter, lay it on your dresser, wherever, leave it at work. And as things come into your mind as expenses that your kids need here and there, you're going to fill it in. So in August, it's cross country in August, it's art club and July is school supplies, like start writing all these things down in the months that you do them. So that way you can start putting those in the budget because people, we can make a budget with bills and groceries and gas.

10:46That's fine. It's all these other things that you just mentioned that pop up that throw us off. And we're like, what about these unexpected? We're like, not really unexpected. We just didn't put them in the budget. So by making those savings bucket tracker, you really can see how much you guys truly afford in a year and look at your budget that way. Because you need to clear pictures to see how much you guys really, how much you cost. Yeah. And so when you're setting up your budget system, do you guys have money left over to pay extra on debt or to put in savings buckets? Yes, we do have a little bit that we put in our savings buckets.

11:17Yes. Okay. So that's, so when Vanessa says to truly see how much you cost, when we work with clients, this is what happens. They're down to the wire a little bit on their monthly budget, but all of these things happen. And that's when we need to look at the savings bucket and say, can we actually afford this? Or does somebody have to go get a second job to afford the kids activities? Like it's almost like activities, nothing else, maybe travel for maybe, but mostly kids activities. And that's where you really need to be able to look at it because that really could be the reason that you got into debt.

11:46That could be the reason that you were using debt to get through because you can't actually afford the lifestyle. So things have to change. Either we have to get a side hustle until we pay off debt, or maybe need to take that restaurant budget down a little bit, or maybe the kids, our kids' ages, maybe they can start to pay for some of their own stuff, but we'll do some of it. You do the rest. There's different options there, but really the point of this is to see if I do what Vanessa said, I list everything out that the kids want to do every year, and it's$600 a month to fund it. And then I go over to my regular budget and I see, oh, I don't have$600.

12:19I know what the problem is. And we're here for the problems. We get it. But we just, that's the problem we actually have to solve and have a conversation with the whole family about it. But if you have enough, that's fine. And, but also it might be like, okay, we're pausing on some things until we, we get this budget figured out. We get some debt paid off. We have some wiggle room until dad gets a raise. I don't know what it is, but that's really the value of seeing how much you actually cost because it really tells you what problem we need to solve. All right, budget besties. It's time for some real talk.

12:50You don't need another budget. You need a budget system. Our simplified budget system is what you've been looking for. It's going to allow you to be bougie on a budget. You'll be able to easily set up a system that runs automatically and shows you exactly where your money is going. And it's going to give you permission to spend. Everybody loves that. Yeah. It's straightforward, pretty, and packed with walkthrough videos that break down the exact methods we use with our clients to get out of debt, set up a bills account, separate spending, build savings buckets, and end the paycheck to paycheck feel.

13:23If you're new to budgeting, this is the perfect way to jump in. And if you're already a budget nerd like us, you're about to meet your new obsession. This is the upgrade to your finances that you need right now. Yeah. So head on over to budgetbesties.com forward slash budget and grab years. Now back to today's show. Okay. And that's a good point that you brought that up because I do feel like right now we don't have, I'm starting to feel a panic because earlier this summer, we had some money to put in a savings bucket, but like this last check, I don't have any extra to put in those savings buckets.

13:55And it's, but it's probably because of these other expenses in the moment. Yeah. That came up that I just didn't think about. It's kind of like funding a savings bucket. It's like funding. It was just in the moment. Yeah. In the moment. Yeah. But eventually when you have these in the moment things that happen, you'll just start moving them over to your savings bucket and going, okay, how much do I really cost? And then you can see what you can really afford. Because as much as we want to fund all the art clubs, all that stuff, birthdays are coming. Christmas is coming. Holidays are coming. Like those things are also non-negotiable.

14:27Annual bills, health insurance, auto insurance, like all that is coming. So we really need to, like Shana said, look at everything as a, at a glance on your savings bucket tracker and make a decision. These are, this is what we want to do. Some of that stuff is non-negotiable. So put it on your tracker, highlight that and say, okay, these are happening regardless. What is, what on here is flexible and what needs to go? And cause you have to be able to afford that. Yeah. Yeah. I mean, Sam knows the things your kids want to do, like there's been coming up where they want to do an overnight, they call it a roundabout.

14:59It's like a youth group thing and it's going to cost each one of the kids$40 each. And besides the fact that they'd be up all night, I don't really want them to do that. But I also am like, I don't have$80 to spend on that. Well, make work for it. They can go volunteer or wash somebody's car and make$40. People want to help kids. This is what I was telling my son. You go out there and you tell people that what you're trying to accomplish and what your goals are, they want to help you. $40 is easy. I thought you were going to say like hundreds of dollars. A thousand dollars. I was going for a thousand.

15:25Yeah, they got that. Yeah. Yeah. And honestly, this is such a good conversation because it's going to teach them. We are all for teaching the kids and empowering them. And that's what we've tried to teach our kids. Hopefully if they come on, they will, especially her daughter's a great example with volleyball. If there's something you want to do, you can do it. You can make the money. Like you don't have to rely on mom and dad to make things happen for you. You're, you're able to do it. So there's that lemonade stands, all the things, and it just teaches them such good lessons and, and take some of the pressure off of you because then they can start to, to, they can see which way.

15:56And then if you have the kids budget that you have for them too, you or the family one or whatever, you can say, this is the budget we have anything over that. Then you get to come up, which is a great lesson. Don't feel any guilt or bad about that at all. That is you're doing more for them by doing that than you would be for paying for stuff for them. How old are they? They're 11. So they could do some of that. Girl, brave him in on the conversation. Again, it's not about we don't have the money. We can't afford it. Better sell some art that she's there to make. Yeah. It's about, listen, this is the budget we have.

16:25You get to decide we budget a hundred bucks a month for your kids stuff. You get to decide how you want that spent. Let them assume some of that responsibility and take it off your shoulders. Okay. That's a good idea. Yeah. The other thing I wanted to ask you about was I was, I checked into Ally Bank because I know they have a high yield savings account. It's just easy to use, but I don't really like using it because they have a thing where if you want to transfer money, it takes several days and that just can, that gets hairy. Like when I'm doing the budget system, it's always working out for me.

16:58So I need to get something that's a little bit more fat, like fast to do. So I hope you guys had a recommendation on that or. I have a, we have some thoughts. So first of all, you can have whatever you need the money for. You can have spending accounts in Ally. So yes, we have separate banks is always going to be tricky, but you can put your spending accounts in Ally and then there's no wait. That's true. The other thing that I do personally is my ally account. I can add that as an external account in my bank, the bank, and it's instant transfer. That's a little. If you do it the other way around.

17:33Yeah. So instead of telling ally to send it or pull it, you use it through your bank as an external account. It will go faster. And then the other thing there is if it's, you get used to the delay. That's what I was going to say. So unless it's an emergency and I actually, the other third option, I guess, is we do have clients that have one spending account in their ally that they just, in case they need to use the money, they have a card. It's not like a regular spending, but like there's a checking in there in case I need to use it for something it's there. So those are some options. Otherwise, otherwise any bank that you, any check credit union that's local is probably going to be a good one.

18:09There's not like one bank solves all the problems we found. I know we're trying to get there, but you've had really good luck with client shopping credit unions and local banks. Yeah. Okay. So the ally thing you're saying, I have it set up right now with my local bank, but I guess I have it backwards. Yes. And that's the normal way that you would do it. It's not nothing that you did wrong, but I just, I tend to test all the banks that we're telling people. I have a lot of different ones. That one I found. Yeah. Yeah. The way that they pull, it takes about 13 years. Like they email you once before it happened.

18:41and you're like, oh my gosh. And then it finally happens. If I do it the other way, then I have access immediately and I feel like I have more control. Yeah, I just like to see the numbers. I just like to see it be instantaneous and not to be like, okay, we're bored five days. Yeah, that's not, nobody wants to. You don't have time for that. I don't like that. Okay, so I could look into doing that. And there was something else I wanted to ask you about. It's gonna be good. I just wanted to make sure. It sounds like I'm a paycheck ahead, except for I'm just not really, I don't have enough ahead for spending.

19:12So it sounds like I need to do something to get ahead with my spending. Is that what you're saying? No, your spending works off of, we've decided it's going to be your husband's paycheck. So when he gets paid on like the 26th, whether you want it to happen on the 26th or it happens every 27th, you're going to set up the transfers from your bank to go out. So you have the cash on the 20th. You said he gets paid on the 11th and the 27th. Yeah, the 11th and the 20th. So you'll have two sets of transfers because banks usually don't let you pick certain days. So you'll have one set of transfers going out on the 11th, one set going out on the 11th and 27th.

19:4820th, yeah. 27th. Yeah. Whatever. Whichever day. But the way, what you're saying is, I feel like there's not enough money in the bills account to pay the bills that are due and do the transfers. That's what you're saying. That's what we're talking about, getting a buffer in there. if you can either defer a payment or you can add like a$500 or whatever you find the differences. So really whatever the difference is between. And then the other thing that we have people do sometimes is just go on a spending freeze for the first cycle, because then that gives you time to get ahead, build a buffer into your bills account.

20:19So instead of 500, maybe we're doing 200 for groceries or something just so that we can get that buffer in there. And then eventually it definitely, Adi, it's going to get automatic. It's going to get to the point where it feels carefree and good. You just need the minute to a little bit of pocket money there to let it, let the system do its thing. And I'll tell you, so you're basically going to start September's budget on the 27th or 26th, whatever day. Okay. And so you're adding that week into September as spending. Okay. That makes sense. So you're going to have one, two, three, four, five weeks in September for spending.

20:55Okay. I see what you're saying. Yeah. If you just do it, the good thing about him doing it, or you guys both have specific paydays, you can just do your transfers on those specific paydays. Yep. And that amount just has to last that pay period. If you're doing them twice a month, like I have to live until our next paycheck on whatever amount I've decided to transfer. That's doable. Like what we're saying is not knowing if you have the money, which is where we usually start, right? I don't know if we have money until the next paycheck. That's not good. And then the once a month, that's not good.

21:24But this is a doable system you guys can set in place. And then did you and then any other questions you have, we could try to answer them. But just give your again, give yourself grace. You're just starting. And yeah, it's really good. And it's going to get easier, especially if you pay down debt, you're going to have more wiggle room and stuff. So it's gonna be good. Okay, I think that's all I have for now. I'm gonna digest all that info. Thank you so much. You're welcome. Thank you for coming on. I appreciate it. Okay, no, go eat lunch. And then we'll eat lunch. Everybody will have some lunch.