Comments on: The Concept That Changed Our Financial Life

By: Bab

Bab — Sun, 07 Mar 2010 13:15:49 +0000

Hi, when my husband and I started dating 100+ years ago…. I was the financial expert and he had a great job and zero interest or experience in money management. Within 3 months of our meeting, I took over his checkbook, facilitated his opening and contributing to his IRA and have managed our resources to an excellent net worth ever since!

By: Renee

Renee — Wed, 17 Feb 2010 01:38:29 +0000

After reading your debt reduction plan I am a bit confused when you say:
We take all of the money in month one, say March, and leave it in our checking account. Itâ€™s in the account, but we donâ€™t touch it. Every time we get paid in March, we simply put the money aside and hold onto.

so, don’t you pay your rent and bills (light, gas rent) due for March. I am just starting out, how can your system work for me.

By: Nancy

Nancy — Sun, 31 Jan 2010 01:27:27 +0000

I get it! I had to read it a few times but I understand and it makes more than perfect sense. Last year, my husbands pay schedule switched from getting paid on the 15th and the 30th to getting paid every other week. We spent all year trying to catch up because each check was several hundred dollars less on this schedule. Of course, twice a year we got “extra” checks, but by then we were still playing catch up. Had we been living off the previous month’s income instead of the current paycheck, the impact would not have been nearly as great. Now that we are working hard to get debt free and build an emergency fund, I see how living on the previous month’s income is imperative to reaching our other financial goals. THANK YOU!!!!!

By: Stop Living Paycheck To Paycheck Today

Stop Living Paycheck To Paycheck Today — Wed, 20 Jan 2010 16:40:55 +0000

[...] Today, I had the pleasure of reading No Debt Plan's article on living off of last month's income and I just had to share it with you.Â Every one needs to read this article.Â Then, once you [...]

By: matt

matt — Mon, 18 May 2009 03:42:45 +0000

renee you still do this?

By: matt

matt — Mon, 04 May 2009 20:43:21 +0000

renee you do this too?….kevin this is a great article…….its easier to budget monthly than by pay periods…

By: Cheap Trick

Cheap Trick — Tue, 06 Jan 2009 19:14:47 +0000

I do a modified version of this that might be a bit easier to execute.

First, do a rough budget to get a total cost per month, add 10% to that and divide that by 2. If this amount is more than your paycheck, see where you can squeeze even a few bucks a month under this amount ($5 is fine). Commit on your pay day that you will transfer to your checking account only the amount you’ve calculated. This gets easier f your company offers direct deposit, as you can have deposits go to your savings account or make a habit of depositing your check to your savings account first.

At that point, just proceed to use the money in your checking for bills, and the 10% is for you to use as needed, but if not used, rolls over for use at the next pay cycle. Once you’ve grown your rollover enough to pay an equal amount of a bill, pay that bill a month early and continue to pay as normal, and then pay a different bill a month early the next time you have the spare change. At some point you will end up with all of your bills being a month ahead, and there you have yourself living a month ahead. If you hit a hard time, use the spare cash in checking as needed and then work the plan over again to get back to being a month ahead. If your really in to this, I made myself over about 4-5 years time get about 3 months ahead on my bills.

By: Lloyd

Lloyd — Fri, 23 May 2008 07:42:35 +0000

hi there, your suggestions are very helpful. Was wondering if you have any good informative ebooks on the subject. Do let me know…thanks in advance…cheers:)

By: Renee

Renee — Sun, 18 May 2008 02:51:26 +0000

I did this by waiting until I had an income tax refund check that was equal to one month’s salary. I deposited that check on the first and then held each week’s check and deposited the total amount the first of the next month. I didn’t know other people did this, either. My extended family thinks I’m crazy.

By: Karen

Karen — Tue, 25 Mar 2008 23:53:09 +0000

bshock…take you snarky attitude about the midwest and shove off. There are plenty of smart, hard-working, well-compensated people living in flyover country, even Indiana. I’m one of them. And, Bahamut, taking a couple of months off your 401k to build an emergency fund is not going to destroy your retirement.

As for the OP…my spouse and I did something similar when we were in our mid-twenties, and lo and behold, we even had student loans. Kevin, you’ve given great advice. Two thumbs up!