You’re Supposed to be Broke After Payday!

Payday is a day that most people dread. Many joke that their paycheck is spent as quickly as it is received. But is that really a bad thing?

Personal finance experts indicate that spending your entire paycheck on payday is essential to living on a Zero-Based budget.

Broke-ism after payday is a good thing!empty-pockets

The concept of Zero-based budgeting is an important part of a personal finance plan. Zero-based budgeting requires that you spend all of your money on paper or in your budgeting software before you actually pay your bills.

If you have surplus at the end of the budgeting process, you must allocate the surplus amount to another category. At the end of the process, your income and expenses should always equal zero. A surplus creates a false sense of security causing people to overspend.

How to achieve Broke-i$m after payday

We all know that becoming broke after payday is not difficult. So here are a few tips on how to achieve Broke-i$m after payday and be happy about it.

  1. Create a budget on the day before or on payday.
  2. Make sure to pay all necessities first (mortgage/rent, utilities, car payment, groceries, insurances).
  3. Be certain to allocate ALL money to a category in the budget.
  4. If there is surplus, use it to pay debt.
  5. Always have a blow/miscellaneous category. This is money you can spend and not feel guilty.

Broke-i$m after payday is good because:   You told your money where to go, before it told you where it went. -Dr. April Murdaugh

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