Plan your money between paydays
Put deposits and bills in date order so a balanced month does not become a short week.
You will learnFind the lowest balance before the next payday and adjust the plan before it becomes a shortfall.
Quick scenario
Choose an answer to see the explanation.A monthly plan shows enough income to cover expenses. Can the account still run short before payday?
Worked example
Seven days until payday
Jordan has $240 today. A $90 phone bill is due tomorrow, a $70 transit pass is needed Friday, and $55 is planned for food before a $420 paycheck arrives next Tuesday. The lowest projected balance is $25.
$240 − $90 − $70 − $55 = $25 before the next deposit
- Today$240 available
- Phone bill− $90
- Transit + food− $125
- Before payday$25 buffer
Key ideas
Three things to know
A budget and cash flow answer different questions
A budget asks whether income covers expenses over a period. Cash flow asks when each dollar arrives and leaves. Both can be correct while the timing still feels tight.
Read more
Start with the money available now. Add deposits on their expected dates and subtract bills and planned spending in date order.
Watch the lowest point
The ending balance is not enough. The lowest balance before the next deposit shows whether a payment may fail or create an overdraft. Keep a small buffer instead of planning down to exactly zero.
Adjust timing before borrowing
If the projected balance falls below zero, pause flexible spending first. A biller may allow a due-date change, but confirm the terms before relying on it. Avoid using a credit card simply to hide a timing problem that will repeat next payday.
Practice
Check the next seven days
Use the example first. Then change one number and compare the result.
Interactive calculator
Check the balance before payday
Match the phone, transit, and food costs in the example, then test another plan.
Knowledge check
Check your understanding
Question 1 of 2