Being paid in cash or checks can take a little more planning than getting an automatic direct deposit. Instead of having a clear history of your paychecks and spending habits on a banking app or website, you have to come up with your own money management system.
It helps to build a system around your actual paydays and upcoming expenses. Create a plan that helps you manage your regular expenses for the month, like rent, utilities, transportation, and other unexpected costs. The more you can plan before the month gets busy, the fewer financial decisions you have to make on the fly.
Start With the Money You Actually Have
Budgeting can be relatively simple if you make the same amount per paycheck and have a clear idea of your major regular expenses. Keep track of how much you receive each paycheck, make a list of expenses that need to be covered before any discretionary spending, and consider bill due dates so you have that money ready to go when it’s due. Money that’s sitting in your wallet isn’t necessarily money that’s available to spend if part of it already needs to cover an upcoming expense.
However, budgeting can become more difficult when your income varies month-by-month. In cases like this, use a more conservative estimate of what your monthly income will be. You’ll be prepared if it ends up being a light month, but you’ll have cash left over for savings or extra spending if you make more than expected.
One thing people sometimes forget to consider in their budgets are expenses that happen irregularly. That could mean costs like annual fees, car expenses, school costs, or other expenses that only come up once or twice a year. Not being prepared for these higher-expense months can throw off a budget that otherwise works well month to month.
Give Every Paycheck a Job Before the Money Gets Spent
It’s easy to feel like your paycheck has disappeared without you realizing what happened to all of it. That’s why it helps to set aside money for specific expenses. Many people start by creating spending categories for things like bills, groceries, transportation, and household expenses.
Keeping track of what you spend on these categories every month helps, too. You just need to find a system that works for you, whether that’s in a spreadsheet, a notebook, your notes app, or somewhere else. The general goal here is to have one place where you can get the big picture about your spending habits.
Looking for more ways to keep your spending on track? Read our guide to managing your summer budget without falling behind.
Make Financial Errands Part of Your Routine
The most difficult part of this is having to manage everything yourself. It’s worth it to explore ways to make money management more straightforward. Once you’ve created your budget and spending plan, you also need to think about paying bills, cashing checks, and doing other errands related to your money. It helps to have a go-to place in your neighborhood where you can walk in at your convenience and do all your financial chores at once.
At Cash2Go, people in the Chicagoland area can get multiple financial errands done in one trip. That includes cashing paychecks, paying bills, and sending money to family members, among other things. Having a local financial services business where you can take care of several of those tasks can make your schedule easier to manage. Instead of treating each financial errand as something you have to squeeze into your schedule separately, you can make them part of your regular payday or bill-paying routine.
Build a System That Works for You
Being paid by cash or check doesn’t mean you can’t have a clear system for managing monthly expenses. Find a Cash2Go location near you and make your next payday part of your monthly routine.