One thing that I didn’t expect would be different when I moved to London was the way I got paid. In England, it is standard to only get paid once a month.
When you are used to getting a top-up of cash every two weeks, it can be pretty hard to budget your money to last the entire month. So far, I have sucked at it.
As soon as I get paid, almost half my money goes to rent, then more disappears to pay my cell phone bill, pay the gym membership, and pay for my transit pass. (I also put a bit in savings for emergencies.)
By the time I’ve paid all my bills, I have about £300 left to last me the rest of the month. Of course, I end up spending £225 in the first two weeks and then trying to make £75 last the other two — it’s doable, but not very comfortable.
I realized today that my problem was I didn’t think about my monthly budget on a daily basis. I ended up spending too much because I wasn’t doing the math of what I would need to last the month.
So, I’m taking a new approach.
From now on, I am going to take out £10 in cash every morning and only let myself spend that much for the day. Of course, I’m going to carry over any amount I don’t spend in a day to the next. It’ll also force me to save up a few days if I want to go out partying on the weekend. (Though to be honest the only way I’m having a night out this weekend is if someone pays for it!)
I will let you know how my plan goes. I think I will even start putting up a weekly tally on here to keep me honest. What do you think of my plan?