When it comes to the dance and balance between estimating what my paycheque will be and budgeting what to do with it, it is important to remember the flop.
What is the flop?
Well, since I am not as retentive to look up payroll deduction tables to get a more accurate estimation of what my paycheque will look like, I use a Percentage Deduction method.
Basically what I do is take a guess, (usually by comparing my previous estimate with the actual deduction amount) of what percentage to lop off the top of my paycheque.
This varies throughout the year. More is taken off in the beginning and slowly less and less as the year rolls on.
So I will start out the year taking off 27.5% and end the year taking off 21%. Again each percentage point makes a huge difference
This is why I keep tweaking my numbers to get as close an estimation as I can. I also remember to stay a bit on the aggressive side.
I do this so my estimated paycheque comes in a bit lower than what my paycheque will actually be.
So the Flop is that little bit of extra money, as in I am standing where my estimation says my paycheque will be but flop forward to "move" that extra bit forward (financially speaking).
I do this because it is much more fun trying to determine what to do with that little bit of extra money than having to cut in order to balance your budget.
This time around, I am actually counting on that flop to balance my budget, but one way or another I will make this budget work.
For I am determined.
As always: Keep your head up, your attitude positive and keep moving forward!