How I Break Down My Paycheck
Since last month, I have been discussing budgeting. Let's discuss how I break down my paycheck to fit within that budget. Reminder: this is just the way I do my paycheck breakdown and I am not a financial advisor.
First, when I receive my paycheck, I immediately write down the amount I have been paid, as a reminder of my current balance, so I don't spend more than I have. Fun fact: The money in my checking account is not the full amount of my paycheck. I divide my paycheck between two accounts; 90% goes to my checking account, and 10% goes to my savings account. This is a way for me to save without thinking about it and keep money out of sight, out of mind.
Secondly, I set aside my transportation money to ride the bus and train, as that is how I commute to and from work and school.
Next, I would put aside money to pay off my credit card. I pay off all the expenses that I paid on my credit card. After that, I pay myself, aka add more to my savings, and also give myself money that I can spend for the next two weeks. There it is, how I break down my paycheck!
