Friday, 16 September 2016

The Extra Payday

My payperiods actually run from the 1st to the 15th then from the 16th to the end of the month. So there is zero chance of an “extra payday in a month.”

Come the end of the month and the middle of the month, however, I have a good bead on what my upcoming paycheque will look like.

With my payperiod entering its half-way mark, this also means that most of my automatic payments have already taken place.

So, by this point in my payperiod I can I can accurately predict what my bank balances will look like (fiscal disaster or personal stupidity notwithstanding).

As I close in on my next payday (next Thursday) I see that my plan to pay off the truck one payday early is a real possibility and therefore I am facing a conundrum.

I had planned to pay the truck off on October 22, yet as my budgets got closer and shored up; it became clear that it was possible to pay the truck off on October 7th.

So, this means that I will pay my low interest credit card off one payday early as well. Then there will be something unheard of in my plans . . . an extra payday. 

The question then becomes, what to do with it (no, I will not give it to you). 

I could just shift my savings plan up and charge on ahead, thereby paying Wanda off one payday early.

Or I could splash out and buy something impulsive, like a new phone or some other toy. What I have decided to do is a bit more prudent yet closer to the first option. 

I will fund and keep my Mid-Term Savings account up to $2k and trickle-save it higher, whenever possible. 

When that fund gets to just over $2.5K I will then make an extra $500.00 payment into the Long-Term Savings Account.

I will keep my savings plan of $1.5K per payday on track no matter what. 

If I need a bit of extra cash to balance my budget on a particular payday, I will draw a bit from my Mid-Term Savings Account. 

When I have a bit of surplus in my budget, I will put that into the Mid-Term Savings Account. This way it should enable me to keep up this ambitious savings plan.

When the end of October comes around, I should still (I hope) have that $2K still in the Mid-Term Savings Account and use that to pay off Wanda, one payday early.

This plan should level out the ups and downs of expenses and paydays yet enable me to keep my plan to achieve total debt freedom in about a year’s time.

As always: Keep your head up, your attitude positive, and keep moving forward!

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