According to this month’s SELF magazine, research from Duke University found that people who stick to a weekly budget tend to feel more urgency to save money and therefore consider their purchases more carefully than those attempting to follow a monthly budget. They also have more money left over at the end of the month. And you thought I was just making all this stuff up.
Need more incentive to stick with a financial plan?
Reason 2: Surprises are always around the corner. Inevitably, the A/C will go out during the hottest week of the summer. Little Susie is not going to check with you to make sure the emergency room envelope is fully funded before she falls off the swing set at the playground and breaks her arm. Oh yeah, and remember how you went over your cell phone minutes talking to your best friend from out of town last month. I’ll bet that bill was fun!
There is absolutely no way to plan for everything that will come up and throw your finances a curve ball, so you need to make sure you have at least $1000 in your emergency fund and that the rest of your money has been directed into specific categories, like groceries, gas, and entertainment for each week. You’ll be pleasantly surprised when you get to the end of the month and still have money left over for fun activities for the kids or even a special date night for you and your sweetheart. Consider that your reward for sticking to your financial goals each month.