I talk about saving our leftovers quite often, but I’m not sure if I’ve explained what I’m talking about. I’m not talking about leftover food, I’m talking about money.
Our budget is a bi-weekly budget, which getting paid bi-weekly has many advantages. One of them being there isn’t a month between payday, so payday comes sooner. Meaning our money can be stretched and manipulated a bit easier.
The most important thing I do, is start at zero every single payday. Even if there is $50 leftover from the last paycheck, I start back at zero.
That leftover money from the previous paycheck is then transferred to which ever savings sub-account I’m currently focusing on.
We got our bi-weekly paycheck and it was $1,300, and after all of our expenses, we had spent $1,250 by the next payday. So that $50 is transferred from our checking account into one of our many savings sub-accounts over at Capital One 360.
Now our account is back to zero and we get paid again, let’s say $1,312. We only have $1,312 to work with the paycheck, not $1,362…because we saved our leftovers (the $50 left from last paycheck).
Saving our leftovers is a great way to keep us on track and spending less than we make. It’s so easy to just add the leftover money to your next paycheck and have more to work with, but I don’t think it’s really helping you out in the long run.
I can understand though, that some people don’t have that much money (if any) leftover by the next payday. We were there ourselves a while back, and actually spent probably 30% or more each paycheck than we brought in.
It was a nasty mess and took a long time to get out from, but I started saving money even when were broke and others can do the same. Yeah, it takes time and work, but if you really want it bad enough, it can be done.
When we get so close to spending the whole paycheck these days, I will still make it a point to transfer the money to our savings if it is a dollar or more. If it’s less than a dollar, I leave it in our checking account and use it to build up a little buffer.
It’s been (I think) around 4 years that I’ve been saving our leftovers and our checking account buffer has grown to around $80 or so. But I’ve probably saved well over a thousand dollars from transferring our leftovers to our savings accounts. Not too shabby.
Another idea for your leftovers, assuming your finances can handle it…is to use it for donations. Many people want to give back and help others, but just can’t find the extra cash.
Would you ever save your leftovers and start each payday at zero?
What’s the smallest amount of money you’ve saved?