One Month Ahead Budget

Discussion in 'Community Discussion' started by MacGurl111, Sep 25, 2014.

  1. MacGurl111 macrumors 65816

    MacGurl111

    Joined:
    Feb 4, 2010
    Location:
    Seattle
    #1
    Hi friends,
    This is a budgeting question. :D

    I have been googling online for more information on this month ahead budget that a lot of people are doing. I can't seem to understand it.
    I am currently using a YNAB software and looking at it, I think we are a month ahead. If you have a "good" savings and can pay the bills whenever you want, isn't that the same?

    Can someone clarify for me how this "one month ahead" works? Thank you so much!
     
  2. Apple fanboy macrumors Core

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #2
    For me it means I still have 1 months salary in my current account, even at the end of the month.
     
  3. MacGurl111 thread starter macrumors 65816

    MacGurl111

    Joined:
    Feb 4, 2010
    Location:
    Seattle
    #3
    So, if I have a few months of salary in my account, would that be considered a month ahead?
    So, I don't have to literally go around paying all bills one month in advance?
     
  4. Apple fanboy macrumors Core

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #4
    Not sure really. I just paid for my next years house and contents insurance in one payment. If you pay over 12 months its 22% APR. I have the money so I pay it. I think with savings different people have different philosophies. Personally I try to pay for things upfront. It works out cheaper in the end. You can get 0% credit cards, but I've never owned a credit card and never will.
    Just always try to put some of what you earn each month by and you'll do all right.
     
  5. imaketouchtheme macrumors 65816

    Joined:
    Dec 5, 2007
    #5
    It's whatever works for you personally. At the end of the day, it's about saving and growing the money you would normally waste away. Paying off any type of interest bearing account early is definitely the most beneficial way to generally gain wealth (most of the time).

    This. Exactly how everyone needs to look at "saving money". Saving money doesn't mean paying everything on time each month and putting 10% of your earnings into an account, it means saving on interest.

    I'm just making up numbers at this point, but if you have $3,000 in an account and there's a way to put that $3,000 towards a 22% interest account to avoid all those charges, that's going to be the absolute best investment you could possibly make. Putting that money in money market, CD, savings, or buying stocks will be much less efficient.

    Although I do have to disagree about not going after 0% credit cards, especially if you're on time with payments. If you do get a 0% card on something you have to purchase, you can use the money you're saving up front towards other interest bearing accounts.

    Now, if you don't have any at all, then you're right. ;)
     

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