budget for 1x a month pay

[itlw8]

I am self employed I have a family childcare... I just realized almost all my clients I will have this fall want to pay 1x a month...ouch

I am so used to some paying 1x a month some every two weeks and some weekly that there was always money coming in all month. Hard to keep records for the business but easy to budget our money.

Dh gets paid every 2 weeks so that will help

How do you save the money so it is there at the end of the month ?

I guess I need to learn to budget and stick with it.

plus mortage is due on the 1st and I will get payments on the 1st so somehow I need to get a month ahead so I am not late each month....

[tammy88]

i would charge a month in advance most montly programs to that, cell phones, cable, homes..they should understand

[FrugalMomof3]

Doesn't your mortgage company have a grace period where no late fees are charged if paid by let's say the 10th of the month? I also would charge a month in advance for child care services.

[StartingOver]

Doesn't your mortgage company have a grace period where no late fees are charged if paid by let's say the 10th of the month?

I was thinking this same thing when I was reading your post. For example our mortgage is due on the first, but we have until the close of the 16th to make payment, before a late fee is added. Take a look at your statement, it should show it there.

[FreesiaE]

Getting paid once a month won't affect your bottom line though, right? It's still the same amount? I've always ever been paid once a month in a professional office setting, and it works out fine. Just pay bills on time. I like to pay them the same day they come in.

[staciah]

Can you see if you can change the date of your mortgage payment. We used to pay ours on the 15th of the month. Now we pay it 2x a month. 1st and 3rd friday of the month. That splits up our payment in half but we also end up payment more on our principal.

Setting up a budget is key to saving money. Pay yours bill the same time every month too. For example: My DH gets paid 2x per month. 1st and 30th. I pay our phone bill, water and sewer on the 1st and pay our cable, elec & gas on the 15th. I set aside $40/ wk for food. $35 /wk for gas. I also set aside our saving fund. Microsaft money is a great computer program.

It's nice to have a budget, there is less stress in your life.

[MomToTwoBoys]

I agree with staciah. I'd see if you can get your mortgage pay date changed. We have our mortgage set up to where it comes out biweekly on the same day that DH gets paid, which works out marvelously as far as budgeting goes. We also have it set up as direct withdrawal and that does wonders for us. We can budget that in, and that cash for the month automatically goes to the mortgage withdrawal dates.

When we switched to a budget, it was awkward at first and this is our official first month budget (I didn't count May because I started the frugal thing in the mid of the month). I'm able to look at the month and the days that both DH and I get money, then factor in the bills and put every penny down to the exact minute that it needs to be spent.

I'm in agreement with FrugalMomof3 as far as asking for them to pay a month in advance. Explain to them that in order for you to budget efficiently and have the right things for their children, you need a month ahead to make sure things are smooth for everyone involved.

[Siebrie]

I get paid once a month and really like it. You get this big lump of money and you know exactly what has to be paid with it, the rest goes straight to savings (leaving a small amount in the current account). When I was temping I got paid every week, which to me was horrid. Every week a small amount seemed like pocket money, not like real income, so I wasted it on things and was short for the rent every month.

[Frugal Nurse]

I kind of like the once a month thing.
Put it ALL in the bank and leave it there for expenses. PERIOD.

Now for the mortgage issue. I agree with your concern.

We've always paid our morgtage a month in advance. If it's at ALL possible to tweak your payments earlier each month so that you are paying next months mortg at the end of the 1st week of the previous month - that would be ideal.

If you can't do that by any means - ask the parents to pay you on the 15th of the month. This will give you a week (in case the parents are late etc) to get your funds in order to pay the mortg before the first.

And it goes without saying. They pay a month in ADVANCE.
That's how daycare centers do it.
and, if your contract doesn't say it... if they leave before the 30 days... you keep the $$.

one more thing. it should be all or nothing. All parents pay the month in advance - or no one. For accounting purposes.

[Ceashels]

My girlfriend does childcare and she has it written in her contracts that payments are to be made weekly. Are you able to make an addendum for your business as well?

[vigilant20]

My last job I lived alone and got paid once a month. I called everyone I made a monthly payment to and asked them to change the due date to the first week of the month. I was able to pay all the bills on the first of the month, then whatever I had left I knew I was free to use.

[dkhd]

My husband and I only get paid once a month. It takes some getting used to but after a few years I love it.

1.We pay ALL our bills on the first of the month. Even if something isn't due until the 19th or 25th--it gets paid with everything else.

2. We are on balance or budget billing with all our utilities. They estimate my bill for the year--divide by 12--and I pay the same amount every month. This makes it alot easier.

3. We use the envelope system. We take our gas money and food money and fun money on payday. We divide the food money up into 4 separate envelopes. It's amazing how much you don't need something if you don't have the cash for it.

4. We have an emergency fund. We try to keep $2500 in there but recently got hit with car repairs and a medical bill.

5. Any extra $$ we make by selling stuff, we put in the fun envelope or make an extra payment on the cc debt.

I love paying the bills---it feels good to know that every bill was paid. I don't have to balance the checkbook or even log into my bank after the 5th or 6th of the month---I make sure everything has reached it's destination and then I don't think about it anymore.

Good Luck!

[itlw8]

Thanks everyone for the ideas..... I do have until the 15th so I guess I should not fret on the mortage.

They do all pay in advance. I learned that years ago. no matter how they pay tuition is paid in advance. I have no problem with a month in advance some have done it for a long time it just means now I need to watch the money closer.

a written budget
the envelope system for spending money
we have a second checking account for an auto equity loan I could use it more for bills. right now it is kinda a savings account for dh he wants a boat.

I suppose I could even open a free checking account that could be used for extras. then I would have a debit card but no chance of spending the money needed for bills. hmmmm


thanks again talking it out and getting ideas from others really helps solve problems

[larabelle]

I once had a job in which I was paid once monthly. It took time getting used to it but then I loved it ...I did the same as dkhd. I paid every bill at the first of the month. It did not matter when it came due it was paid on the first. I loved the fact that I did not have to stree out over bills because I knew they were ALL paid!!

[dancar3]

Both my dh and I get paid 1x/mo w/ our "main" jobs and we do have a small part time job that pays biweekly. I absolutely love getting paid once a month! As long as you have your written budget, take out the alloted amount for groceries and gas (well at least that's what we do), put some into your "sinking funds" (we move it into our ING account) and stick to the budget.....soon you'll realize how much easier it is this way. It sounds like you're going to be just fine, good luck!