Disclosure: Some of the links below are affiliate links. This means that, at zero cost to you, I will earn an affiliate commission if you click through the link and finalize a purchase.
The beginning of the year is normally a time of stress and worry over money for most people. It’s a time that resolutions are made and plans to attack debt are put into place. I TOTALLY GET IT, I’ve been there. I am currently on a debt journey, and I am in a constant battle with paying off debt or saving. I think both are important, which is why I want to talk to about saving.
Today, I will tell you the ins and outs of getting one month ahead on bills. I will also give you some tips to calculate your total expenses and create a plan to get one month ahead. I have included a free one month ahead savings tracker at the bottom of this post to help you start saving to get one month ahead!
To get your Free Month Ahead Savings Challenge, click the link below to begin the download!
Month Ahead TrackerWhat is a One Month Ahead Fund?
One month ahead is exactly what it sounds like. You have one month worth of expenses saved. There are many reasons that people get one month ahead on bills, but the main one is to reduce the worry about splitting bills up by paycheck. Being one month ahead on bills will allow you to pay your bills for the month at once.
It takes the stress off your budget and allows you the room to plan where your money goes. I am currently one month ahead on bills and I feel a weight lifted knowing that my bills are covered for this month and each paycheck that I get this month is for my future expenses. If you want to feel the relief of having a savings cushion and not allocating a bill to each paycheck, then I want to help you learn how to create a one month ahead savings fund.
Create a One Month Ahead Savings Goal
It all starts with adding up your monthly expenses. These include fixed expenses such as: housing, transportation, food, clothing, phone, childcare, debt payments, etc. If you already have a monthly budget, then you would use the amount of your total monthly budget to determine the amount that you need in your one month ahead fund.
If you do not how much your monthly expenses are, I will tell you a couple of ways to calculate the total amount. One method is to take your most recent bank statement and add up how much you spent in that month. You can take it a step further and categorize the amounts into expense categories (housing, food, clothing, transportation, etc.). This will help you to determine how much you typically spend in a month so that you can set your savings goal.
Another way to calculate your total amount is to write all of your monthly expenses and the amount of each expense. Then calculate the total amount of your monthly expenses. This is a great way to create a monthly budget and determine how much money you need in your one month ahead fund.
Decide Your One Month Ahead Savings Goal Date
Now that you have created your one month ahead savings goal amount, it’s time to decide your savings’ goal date. This is the date that you want to have your savings goal completed. Since one month of expenses can be a large amount, give yourself enough time to save. The goal date should be realistic, so that you are motivated to save consistently. There is no rush, so choose a date that works for you.
Create a Savings Plan
A savings plan is the amount that you will contribute to your one month ahead fund each pay period or pay frequency. It can be a set amount, or an amount that you add when you have extra income. It is best to create a savings plan before you begin saving so that you can add this amount to your monthly budget.
The savings plan is based on your savings goal date. If you want to have a one month ahead fund saved in six months, then your savings plan will need to help you achieve this goal.
For example, if your one month ahead savings goal is $2,000, your savings goal date is in six months, and you are paid weekly, this is what your savings plan would look like:
Savings Goal Amount: $2,000
Savings Goal Date: 6 Months
Pay frequency: Weekly (24 paychecks in six months = 6 months x 4 paychecks a month)
Savings Plan = $2,000 / 24 paychecks = approximately $84 added to your one month ahead savings per paycheck (I rounded up to get $84)
This means that my savings plan will be for me to add $84 per paycheck to reach my savings goal of $2,000 in six months. You will have to adjust your calculations based on your goal amount, goal date, and pay frequency.
Choose How You Will Track Your Savings Progress
If you are familiar with my style of saving, then you may already know what I will suggest that you use to track your savings progress. A SAVINGS TRACKER! I love savings trackers because I can see my progress as I save. I love to create savings trackers that are fun and motivational.
If savings trackers aren’t your thing, then use other methods to track your progress. This can be creating a savings account for your one month ahead savings and reviewing your bank statement monthly to see your progress. You can write down your savings progress in a notebook, notes on your phone, or planner. Use a method that works for you and that encourages you to continue saving. I will always suggest a savings tracker, because they are what has worked for me time and time again.
Free One Month Ahead Savings Tracker
If you are interested in using a savings tracker to track your progress, then I have a treat for you. A FREEBIE! I love freebies and want to share what I used to save one month of expenses. This is the One Month Ahead Savings Tracker. I have included instructions on the tracker to help you start saving!
To get your Free One Month Ahead Savings Tracker, Click the link to begin the Download:
Month Ahead TrackerPlease feel free to check out the free budgeting resource library that has all a bunch of budgeting trackers to help you transform your finances: Free Budgeting Resource Library.
It’s Time to Get One Month Ahead!
Now that you know what a one month ahead fund is and how to create a savings plan, it’s time to start saving! Remember to create your savings goal, savings goal date, and to base your savings plan on your pay frequency.
Please use the Free One Month Ahead Savings Tracker to track your progress. The feeling of being one month ahead on bills will be worth the effort put into setting up a savings plan. The main way to reach your goals is to stay consistent! It will be worth it, so don’t give up when it feels like you are not making progress.
Before you start saving your one month ahead fund, please leave me a comment below letting me know how you plan to track your savings progress. Don’t forget to connect with me on social media: @thesavingbutterfly
