One Month Ahead Budget

MacGurl111

macrumors 65816
Original poster
Feb 4, 2010
1,281
287
Seattle
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!
 

Apple fanboy

macrumors Nehalem
Feb 21, 2012
36,962
25,957
Behind the Lens, UK
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!
For me it means I still have 1 months salary in my current account, even at the end of the month.
 

MacGurl111

macrumors 65816
Original poster
Feb 4, 2010
1,281
287
Seattle
For me it means I still have 1 months salary in my current account, even at the end of the month.
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?
 

Apple fanboy

macrumors Nehalem
Feb 21, 2012
36,962
25,957
Behind the Lens, UK
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?
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.
 

imaketouchtheme

macrumors 65816
Dec 5, 2007
1,094
4
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?
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).

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.
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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