Have you ever had an unexpected bill set you back and make you go deeper into debt? Those new tires set you back $400. That trip to the doc cost $800! Or that time your electric bill doubled in one month! It happens to all of us. So, what’s the best way to deal with an unexpected expense? A buffer month of money has prevented me from going into debt, and it could help you too.
What’s a Money Buffer?
A buffer is something that protects you from bad things. It’s something that stands between you and trouble. Money is a cause for trouble in almost everybody’s life (sooner or later). A money buffer stands between you and money stress.
Having a money buffer means that you have a month’s worth of paychecks already in your bank account ready to pay for this month’s expenses. This means you’re paying for July’s bills using June’s paychecks. If that sounds backwards, it’s not. It’s forward-thinking, and if you build this buffer, your life will be so much less stressful.
It doesn’t matter when any of your bills are taken from your account. A buffer month means the money will be there ready to pay all of them. And if your paycheck comes a day or two late because of some holiday, or some mistake by the HR department, it won’t affect you. Because this month’s paycheck is going to hang out in your account to pay for next month’s bills!