I’m trying to create a budget for October to help pay off debt and figure out where my money is going. But I’ve hit a roadblock. I got paid on September 30th and used some of that money to pay for things in October. Now I’m confused about how to track my spending for October since it technically started with money from the previous month. Should my budget run from October 15th to November 15th instead? Am I overthinking this? I’m not great with money and I’m trying to save, build an emergency fund, and kill off my debt.
I’ve been there too! What I do is separate my monthly budget (spending limits for each category) from the actual cash flow. My budget runs from the 1st to the 31st, including things like mortgage, insurance, etc. But the money for those expenses actually comes from my last paycheck of the previous month. For example, my October 1st bills are paid from my September 15th paycheck. It works because the bills are always due on the same day. Don’t worry too much about it for the first month—it gets easier after that.
@Crosby
That’s really helpful! Thanks for explaining it. I’ll just keep going and not get too caught up in the overlap. I’m trying to set aside more from my 15th paycheck since my end-of-the-month check feels tighter.
No problem! I also use a paycheque planner in my spreadsheet. I break down each paycheck with expected income, what I’m paying with that check, and how much is left. I forecast about 8 pay periods out so I can see my anticipated surplus. It really helps with planning ahead!