How to Live on Last Month’s Income: Simple Steps

This budgeting strategy of paying your bills a month ahead of time will give you a comfortable cushion by saving money, then reorienting your budget so that you live on last month’s income.

Good Debt vs Bad Debt

Have an emergency fund This is such an important part of any type of budget. No matter which technique you choose.

Good Debt vs Bad Debt

Rules to get ahead of your bills

Cut back on all unnecessary spending in order to catch up and get current. Eat at home and shop your pantry, freezer, and cupboards before spending a the grocery store.

Get current on all bills

Take the right steps to create a budget. Do the work to prepare and be intentional with where you spend your money. Show where your values lie with your proposed spending.

Create a budget

To live on last month’s income, you save up enough money to cover your expenses for one month. Once you have created this budget “cushion,” you use it to pay your current bills.

How do people live a month ahead?

Before we learn how to live on last month’s income, I want to explain 5 ways that this financial strategy will help you.

Why should I live on last month’s income?

Help you stay on budget Getting positioned to live on last month’s income will require you to a) have a well-honed budget

Living on last month’s income will:

b) stick to that budget. I strongly recommend using a zero-based budget, where you give every single penny you earn a job. When you are using last month’s income for this month’s bills, you will feel confident knowing you can pay all of your bills on time.

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