PAY US FIRST

Before they get our money, we'll give ourselves some first.

It's the end of the month, which means the next cycle of bills will be due real soon. We all know the drill… mortgage, insurance, heat, electric, cable, etc. They'll all get their money, and we'll wonder where ours has gone. Well, most of ours, anyway.

Each week, we make a point to put a little bit of money aside, before it goes to any other stakeholders in our monthly income. The Wife has it set up automatically to have a small portion of her pay check go into a savings account via direct deposit.

Mine isn't automatic, but each Friday morning I transfer a set amount into an account that we have set up for unexpected life expenses. By rule, we set this money aside before we have a chance to think about spending it. When I'm honest with myself, I can admit that money in my pocket is actually money in someone's else's pocket. 

Are there weeks that our approach makes the checking account tighter? Absolutely, which ensures that we are always aware of our personal budgets. But keeping it tighter along the way helps.

How much? Let's say you put aside $50 a week for an entire year, that's $2,600. If you do $25 a week, it's still $1,300. It adds up, and it comes in handy. For someone who understands true numbers better than theory and concept, spelling it out like this truly helps me maintain some discipline.

Take last weekend. The Wife's car got cranky. Real cranky. It needed work, including new front brakes and four news tires. A tune-up to the tune of $1,000.

You can't really predict that type of expense, though we've all been there. It is a massive punch in the gut.

Fortunately, we've had some discipline for an extended period. Much as it stings, we'll be able to pay off the bill in full, so no debt will accrue.

It's not fun, nor is it exciting. However, by taking the time to pay ourselves first, it really softens the blow when we have to pay other people.