Do This EVERY Time You Get Paid (Paycheck Routine)

Hey guys, if you're on any kind of social media, you've probably seen a video of someone sharing their

routine

s, whether it's my morning

routine

, my night

time

routine or getting ready with me or Sunday reset, there are all these videos out there. I don't know about you, but I seem to be curious, mom of 13, how you do your mornings. I'll watch them so I figured if I binge on random people doing their normal

every

day things that honestly don't matter. Cleaning the shower a specific way or using a certain hair mask before bed, so I feel like I could share one of the routines in my life that is non-negotiable and that is my

paycheck

routine, so

this

is what Which I do

every

month, actually twice. a month when I get

paid

now some of you already know I'm a firm believer in a monthly budget so using every dollar as my budget app is something I love it's something my husband Winston and I use to keep our money organized. but I want to get even more specific with you and share exactly how we prioritize our financial needs for the month and that's everything from saving to investing to covering the four walls, and I'll also go over what you should do with your

paycheck

if you're in a different place financially, like if you're paying off debt or saving for your kids' college and make sure you stay until the end because you'll hear my number one tip to never run out of money. before your next paycheck, but first I want to tell you about one of our sponsors, Christian Health Care Ministries.

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this

truth Importantly, if your paycheck doesn't look exactly how you'd like it to look in the second, that's okay.

I see a lot of people. Let go of a habit like budgeting for when you have everything in order or the amount you want to work with to be consistent, but the truth is that starting somewhere is better than putting it off until you magically feel like you have exactly what you need . successful and guess what as you continue to budget and organize your money, that day will come sooner than you think. Well, first let's talk about how to prioritize your money if you're working on a budget that has debt and let's say you've already saved your $1,000 emergency fund and now you're ready to pay off your student loans, car loans, credit card payments, and Here at Ramsey we call that little step two, so here's what I recommend doing once you get

paid

, open your budget app again every dollar is best and enter your total monthly earnings.

This will include your paycheck. Your spouse's paycheck. Any side hustle or any additional income you have. Next, you will cover your four walls. This is food, shelter, public services and transportation. We're going to connect each of your debts and their minimum payments, so what you're going to do is organize them from the smallest amount of debt you have to the largest, so that each individual debt is labeled regardless of the interest rate . and again, regardless of the monthly payment, this is your total debt. You want to pay the smallest one first, but you want to know what your minimum payments are each month so you don't fall behind at number five Now that you have your debt and your essential expenses covered for the month you have everything left in your budget to be able to prioritize and Obviously you want to prioritize the most important over the least important, so there's going to be things like daycare, your home security system, you know? things that are like these are things that I want to have for sure, these are absolute necessities and then as you go down it's like, oh yeah, fun money right, these things that don't necessarily have to be paid for, it would be great if you had some money for it, but it is not a necessity.

Okay, next let's look at a budget where this person is debt-free but it's in baby steps three, four, five or six, okay, so once you're debt-free, then you're going to take that margin and throw it away. build an emergency fund of 3 to 6 months of expenses so instead of that money going into debt it will now go into an emergency fund and we call that little step three so again the little third step is great because it's a cushion between you and life now, if you're renting and you want to save for a house and save for a down payment, then you move on to the little step 3B, which again takes that cushion instead of going into an emergency fund. going to the down payment on your house, after that guys, and again, when you're good with your home situation, you'll have an emergency fund in place and then next thing is what your paycheck routine should look like again, you go to open.

Every time you're going to include your total income for the month, you're going to cover your four walls, your utilities and transportation, and then instead of allocating a large portion of your earnings to debt and savings, you're now going to be able to channel that room to invest for retirement, so I always recommend people invest 15% of their income in retirement, this can be through a 401k or a Roth IRA, but that will be a place where you say "hello" . I'm going to save some of this money now again. Some people do this on a paycheck per month basis.

Some people make a lump sum. Some people do it several times during the year. Whatever you think, just make sure you have money to finance. your retirement, which is key now, once you've gotten into the rhythm of investing 15% of your income, then you'll want to start putting extra money toward things like the kids' college and even paying off your house early, so if you have children who are looking for a university to finance and say hey, is this a good option for us to open? Put some money in, you know, every year, let it grow into an Esa or a 529 and also look to say Hey, you know?

Are there things we want to save for? Vacation or we want to replace a car, you know there could also be a couple of things that your money is going to and then if you have something extra, which some people do some months, some people you don't always want to put it in. toward your house to pay it off quickly now that you know what to do with your paycheck when you're paying off debt, saving, and investing. I'll share what I do with my paycheck routine in little step 7, so after 12 years of doing this, Wist and I are in a place where we are debt-free, have our emergency fund set up, fund retirement , you know, we're doing college for kids, that's where we are, we're saving, we're investing. and we're giving and those are the things that are really important to us so our typical paycheck routine looks like this to get paid and basically at the top is our giving so we have our tithe we have other places that we give to and it varies year to year in what we choose to give and that's basically the first thing we have in our budget and then we go down to savings so we're looking to say hello, especially in investments, you know?

Money is set aside because we want to maximize everything we can with the investment, then we pay the bills, whether it's streaming services, utilities, cable, cell phone, all those things get paid and then we look at the big expenses for the month. So, you know, if it's November, December, Christmas is usually there if it's a child's birthday, if we have camps that we're signing up for for them over the summer, if we have travel expenses, you know, recently we had to redoing our fireplace and that was a big expense, so we really look at those big expenses that we have to pay for that month and then below that are the small expenses, like eating out or clothes or financing money, you know, things that aren't necessities. , but we'd still love to do it if we can, but the other things really take priority.

Well now we're in this place and our top priority is still managing our money wisely, that's why we always invest in you, we always budget. These are things we talk about on the show and we actually do it every day, week and month. I mean, it's consistent because this works and as promised, now I'm going to share with you the number one tip to never run out of money before your next paycheck and this is huge, the miscellaneous category is fine, if you budget your income at zero and you have every dollar accounted for, then you are not accounting for life and the miscellaneous category is there, it is a cushion in your budget because things are going to come up that you did not plan for and many things can be included in that miscellaneous category, personally it is a one of my favorites because it gives you a little bit of freedom to like oh yeah, this year this year without it feeling like oh my God, we just destroyed everything or we have to dip into savings.

Now you want some protection in your bank account, but what the miscellaneous category does again is it gives you some leeway. your budget month to month, so when life happens, it's your general category, which is just the best, if you enjoyed today's video, then I'm dying to know what you think about my specific budget videos where I really unpack the people's paychecks, so I'll do it. Put a link in the description so you can check them out, and as always, remember to take control of your money and create the life you love.