Friday, 13 January 2017

Budget Crunch Time

Okay, so with the wonders of how payroll taxes work, my paycheques are larger at the end of the year and smaller at the start of it.

Why? Well, this is due to the fact that payroll deductions are weighted heavier at the beginning of the year to ensure that the government gets paid in full and sooner rather than later.

So, whilst the last few paycheques of last year were (woo hoo!) bigger than expected because considerably less payroll deductions were taken off, now, not so much.

This is the end of the year where they take off more and the amount they take slowly declines over the year. This means that my paycheques will be on the smaller side for some time to come.

This is why I have a modest income amount to frame my budgets around. It looks like I may not even make that amount on my next paycheque.

This means cutting back even further than my already stringent budget that I have laid out.

I could easily just cut back on the savings plan a bit and just say I will “make it up later” but I know that I can’t do that. Once you start doing that, you never stop.

I have modelled it and I know that I can’t cut back a dollar in those payments or risk not making my target of paying the Wanda Loan off by the end of this year.

Scrimping, saving and economizing are things I know how to do, and know how to do well. I will weather this and I will set the pattern I need for success.

That pattern is being unwavering and nonnegotiable in the making my scheduled payments on that Wanda Loan. I can cut back anywhere else, but not that.

I have my: Personal Overdraft, Mid-Term Savings and yes my Long-Term Savings, so it is not that I don’t have cash, it is a cash flow thing. (As in how and where cash flows in and out of your hands.)

Cash flow is everything and the secret of my success. For once you master your cash flow and make sure that you pay your bills and are better off (fiscally) at the end of your payperiod than you were before your payday, then you will steadily improve your situation. How quickly this happens, depends on how well you improve your cash flow.

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

No comments:

Post a comment