Question

Good morning y’all!  I decided to take charge of our finances, so I got on YouTube and found Kumikos channel and I’ve been hooked since!Good morning y’all! I decided to take charge of our finances, so I got on YouTube and found Kumikos channel and I’ve been hooked since! We are a one income family of 4. I stay at home with the kids (because daycare is over $1000/mo) and my husband brings in the money. The issue that we keep running into is overdrafts. He gets paid twice a month but it’s never the same dates. It’s always a Friday every other week. So his first paycheck can range from the first Friday of the month to the second Friday of the month (and the second check can be as early as the third Friday or as late as the fourth Friday of the month). The bulk of our bills are auto drafted for the first week of the month and a lot of the time we struggle to buy groceries when his check comes in the second Friday of the month. We try to prevent overdraft fees by pulling from our savings but it doesn’t always work and get charged a whopping $35 per overdraft item! I have tried so many different ways to prevent this but it happens so often and my poor husband thinks that he isn’t making enough money to afford our home! It’s hurting his emotional state as well as mine because he thinks the reasons we overdraft is because of my spending habits. So I guess my question is how do I prevent the overdrafts from happening when the money doesn’t come in until after the bulk of the bills are due but still have money for necessities?  

Answer 1

So, our situation is almost identical to yours - I stay home, hubby works and is paid every other Thursday. We only have one bill on auto pay (our propane delivery), and only because that’s the only way we could do budget billing with them. I go through each month and write out our bills. I split them up between checks however it balances out best and ensures each bill is paid on time. I take the morning on payday to go down through and pay everything that I’ve marked for that paycheck. I’ve had to make adjustments here and there - when we set up the propane payment, the date created a small issue, but I was able to work it so that instead of splitting our rent payment between checks, we pull it all one week. That helped balance the propane payment and not leaving us scraping one week. If you’re finding that your bills are unbalanced throughout the month, I would see if you can have some of your due dates moved to better accommodate your husbands pay schedule. I know it’s overwhelming starting out, but I’ve been able to get ours almost even each check so we have about the same (give or take ~$50-100) left each paycheck for our cash envelopes. It gets easier!  

Answer 2

Can you see if due dates can be moved around? What I do is split the bills per check. So let’s say my electric bill is $200 and is due On the 15th. I’ll take $100 from the last day of the month paycheck and $100 from the 15th paycheck so it’s not a lump sum coming out at once. You have to play some catch up with this method but once it’s set, it helps a lot!  

Answer 3

We stopped all auto drafts! We wrote out what day all bills are due and we pay what we can with the first check that is in those dates, and pay the rest with the next check. We are now almost a month ahead! You got this!  

Answer 4

1) get overdraft protection 2) stop autodrafts! seriously we only have autodraft for our home and car insurance and that's IT. we get paid every 2 weeks and we move our money around a lot, it doesn't stay in our joint checking! we got caught with overdraft fees one too many times

Answer 5

Have a cushion; that is what I am working on.  

Answer 6

We only have 1 bill on autodraft because we get a discount. The rest we pay ourselves. I put money into a savings account from my husband's last check of the month to cover the bills coming out at the same time mortgage does the beginning of the next month. This helps keep us from having no money after mortgage goes out.  

Answer 7

Call the creditors and ask them to change due dates so your bills are split between the first half and second half of the month. Avoid putting the creditors with higher payments all in the same part of the month. Hope that makes sense.  

Answer 8

We write everything down. I write his pay days. So say he got paid last Friday, I know he will get paid next Friday. For us when we don’t get paid on the 1st Friday of a month, this usually feels like 2 weeks into the month. We budget that last paycheck to cover all bills and groceries until next pay day. It can get confusing. But you have to write it down. Use the calendar, have months next to each other. Use the paycheck by paycheck papers (I’m blanking on what they are called at the moment) we’ve had to cut our spendings. We use to think we couldn’t afford groceries and had to pick what bill was paid to be able to feed our family. But we started realizing we ate out 5 times already but we don’t have money wasn’t true.  

Answer 9

This was my same problem. I have been doing this method (BBP and cash envelopes) since mid December and FINALLY no longer have a problem with overdrafts! I also put aside $25 each paycheck for a cushion and it’s built up a little bit now. I even have an envelope for things I forget to budget. To be honest writing it all down and seeing my spending habits have really helped tremendously!  

Answer 10

I am a single mom of three and get paid by weekly aswell. I pay my rent from the second cheque and other bills from the first check

Answer 11

Check out the new greenhouse accounts from Wells Fargo. It's one account but split your money into 2 accounts, One is a set aside account for your bills and the other is a spending account that's linked to your debit card. That way when your debit card account is empty It doesn't overdraft your bills

Answer 12

I’m a stay at home mom too, me and my husband only use our account for bills, anything extra for that pay period goes to cash we get out for our weekly. With our weekly amount I always first do the essentials, gas for my husbands job, gas for me to bring the kids to school and then grocery and household. Anything extra after that should go to your cushion. We had to do the bare minimum until we got that cushion , once we did that we were able to spend a little bit more on ourselves. Also, since your at home can you post old clothes to make extra $ or home items that you just don’t need. There is always a way. You can do it. And keep lifting your husband up. Being a stay at home mom is hard and being a main provider is hard- just keep focus on the bigger picture . Hope this helps  

Answer 13

It's not the autodraft, it's the budgeting that is hurting you. Get a calendar. Write down when every bill is due on that calendar. Write down when he is getting paid. If he just got paid this past Friday, the 28th, you know he's gonna get paid in 2 Friday's, March 13th. Then budget per-paycheck according to where they fall in with due dates. You may have to save some money from a different paycheck to cover bills due later on.  

Answer 14

It's in test markets right now around the country in if you qualify for one all the fees are waived For minimum balances ex cetera for the lifetime of the Account if you open in the trial.  

Answer 15

We are the same. My Husband gets paid every other week and the dates vary. For instance he got paid the 2/21st and will get paid this Friday then 2 weeks after that. With the 21st check we paid rent and I kept the rest for the bills that come out at the first of the month on the 6th we will pay all our bills. I also have no bills on auto pay and manually do them every month it’s probably a pain but I usually pay them early and just want them to be done with. But I rely strongly on my Budget by calender I write everything down so I know what needs to happen each paycheck. We use to overfdraft or be really close to it and now We are more prepared. I’d be happy to show you my calenders.  

Answer 16

I’m a single mom and I get paid the first and third Thursday of every month so I always run into the same problem. Sometimes the first Thursday of the month doesn’t occur until the second week of the month. And man 5 week months are the WORST! I’d be happy to share with you how I manage my bills. Is it ok if I PM you?  

Answer 17

Stop all auto drafts and pay manually over the phone or on bill pay through your bank . You can change due dates on a lot of bills.  

Answer 18

Stop the auto drafts first of all. Set up a schedule with what bills to pay with the first check and what bills to pay with the second check. Once you see the money in the account, pay the bills manually online or over the phone immediately, the sort out what is left over in each spending category you have.  

Answer 19

Stop doing autodraft. Pay online once the money is in the account.  

Answer 20

What about changing you due dates on some bills? We had this problem everything came out on the 20th and we were dying everytime the end of the month came around! I get paid the same (every two weeks) I changed our smaller bills to the beginning to even out the amount each check!  

Answer 21

I think you should turn off auto-pay until you can get into a consistent routine paying your bills. You need to look ahead and plan out the next few paychecks and see where you need to adjust your payment schedule. Also, I’d try to build a cushion to prevent overdraft fees.  

Answer 22

She has a Budget by Paycheck workbook. Its SO helpful! Stop the autondrafts or move them around.  

Answer 23

Stop auto draft immediately and pay your own bills manually. I have same issue since we relocated 8 months ago and you can’t be on auto draft. If you choose to you need to pay all bills at least 7-10 days before due date and that means really getting it set up by planning since you’ll need almost an extra check. April there is 3 checks for those who get 26 checks a years. perfect time to set up paying every bill on autopay still but at least 7-10 days before due date and then it stops the cycle

Answer 24

We are the same! Took us about 2 months to stop the overdrafts. We STOPPED paying debt like credit cards and medical debt. We paid our car payments though. I did the free email course watched a ton of tbm videos and started budgeting by paycheck. A monthly calendar and a budget sheet(from the tbm free library) is what I started with. As well as the budget blueprint. A list in order of each bill by due date from the 1st to 31. And wrote each bill due one the calendar wrote out my paydays. And broke down what Bill's would be paid with each check. I also printed 3 months of statements (used the highlighter method to find out an average for our spending on fuel, food, eating out household items etc) which gave me a baseline for my budget categories! I rewarded myself for getting us out of the overdraft cycles by taking advantage of black friday and getting the workbook! I just googled printable calendars and found where I could custom print a year. Then I highlighted all of the paydays. (less thinking) I have attached a few pics of my setup

Comments

We also have this big guy for everyone to see! As my at a glance for the month!  

Answer 25

I am new to this and just starting out. But I could have written this post. Just know you're not the only one!  

Answer 26

Using this breakdown has helped have me pay all of our bills a month ahead, vs being behind on utilities., etc. we now use 100% cash. Make this be your side hustle, making your money work for you. I’m also a SAHM and have been amazed how much this has turned out life around.  
https://youtu.be/V8R6hP061F0

Answer 27

I’d stop the auto drafts and communicate with your bill companies about changing your due dates.  

Answer 28

So can you split your bills by paycheck? As In figure out what your bills are and the total cost of them. Split that amount by 2 and save that amount each paycheck? After a month or two if you can come up with the extra savings to cover a month then your money will start working for you. As in like for example you have 1k in bills. Plan for $500 to come out of one check and $500 the next one. You can pad extra money for unexpected expenses that way too. Etc I get paid bi weekly and this is what I’ve done.  

Answer 29

As your husband is paid bi-weekly, there will be two or three times a year when he receives three checks in a month. Use that third check to get ahead - it might be the one where you start saving half payments in advance of due dates. Last year I got a month ahead on my bills with the two "third checks" - half a month ahead with the first one, and a full month ahead with the second one.  

Answer 30

Watch the budget mom you tube with Ryen. it really helped me see what I was doing wrong. But one thing I can say for sure, auto pay is not a bi-weekly pay friendly option. There is just too many variables in pay day to make that effective. I only have two set up like that, but because I get a discount. Everything else is old fashion

Answer 31

In your position I would move all my money from savings into checking and turn off all the auto drafts. Try to pay all your bills a paycheck ahead. Pay all of the bills due at the end of the month with the check received in the beginning of the month then use the last paycheck of the month to pay for the bills due the first period of the second month. Once you get a checking account cushion built then start trying to put money in savings again. If your paying out in overdrift fees, your savings isn't doing anything to help you at this time anyway. Good luck. My family has been where you are at and we had to do this to get everything going forward without any additional expenses of the overdraft fees. It does work.  

Answer 32

Stop auto payments. Go and pay each one online manually. Until you have a cushion that you don’t need to worry about it (I still wouldn’t even at that point)

Answer 33

You can call on your accounts and ask to move the payment due dates to a part of the month that works better for you. I did that with internet, Hulu, etc because the first of my month had more bills than my first of the month paycheck could handle  

Answer 34

Setup your savings account to withdraw from and deposit into checking if needed or get a line of credit to do the same

Answer 35

You’ve got to save up 1 paycheck and have it as a buffer so you can have all the months bills paid with the first check in the month.  

Answer 36

I’m paid bi-weekly on Thursdays, so my paycheque dates always fluctuate. I’m trying a new method where instead of budgeting by each individual paycheque, I’m budgeting a month at a time and the month begins at the paycheque that my rent payment comes out of, not the calendar month. This seems like it probably makes no sense, so here’s an example: I get paid Feb 27, March 12, and March 26, so for me, the month of “March” begins on Feb 27 and ends on March 25 because my rent comes out on March 1st (and “April” will begin for me on March 26, because my rent comes out on April 1). It’s a bit confusing to start with and I’m still testing it (I’m beginning by planning my bills 2 months in advance to get used to it). but someone else in this group recommended it to me and it’s really starting to make sense.  

Answer 37

Depending on the creditor you may be able to get them to change you due date to like the 15 the and the last day of the month that way you can change the draft dates that way the checks should go in first

Answer 38

I keep an extra $1000 in the account as my cushion. And replenish it when used

Answer 39

I wouldn’t do auto draft just quiet yet until you can figure out a system hat works. Most complained you can use the grace period to pay and not incur late fees or interest.  

Answer 40

Stop autopayments and call to get due dates moved around to what works better for your schedule!  

Answer 41

It sounds like your cushion needs to be at least one paycheck, or at the very least enough for one week of expenses. So if he makes 4K your cushion should be roughly 800-1000. Do you have enough in savings to move that to checking one time? I agree with removing auto pays and changing due dates would help too.  

Answer 42

We had to stop auto payment for that reason. I called and got due dates moved for some of are bills to the end of the months so everything does not come out at once. Then I started to pay all online or by phone. After about six months we have set up two back to auto pay because we get a discount for it. We just make sure we have the money for them the check that fails befor them weather it is the last check of the month or the first one.  

Answer 43

Get off the autopay. Certain bills will not have a late fee (or will have minimal late fee), so figure that out and flex when you pay to bills (for example you won’t have enough to pay all the bills so you pay one or two with the next paycheck . preferably only being a few days late if you can help it). Pay bills on pay day rather than due date so you don’t miss any. This is just short term until you can get caught up, then start figuring out how you can pay bills ahead of time. If you need to, adjust payment due dates so they are even throughout the month. Then switch back to auto pay.  

Answer 44

This is where we were at first too. Get off auto pay. Most utilities have a 5-10 day grace period. You can cal every company you pay monthly and ask what your grace period is. Always take care of the “four walls” first. They are housing, utilities(lights, heat, water) food, and gas to get to work. From there list your other bills/debts in order of importance and pay them. I’m always willing to help with any specific questions!  

Answer 45

You are going to have to break the bills up into the two paychecks. You should write it all down and take it out of your account before it comes out, like on a register or expense tracker. You may have to pay something twice in one month to get on this schedule. You will have to pay attention to what you have in the register NOT base buying decisions based on your account balance.  

Answer 46

Why are people anti-autodraft? It takes the money out the day it's due. the same would happen if the bill was being paid manually. Unless you're suggesting bills should be paid late.  

Answer 47

If you can’t get due dates changed, then on the second check of the month you will need to choose some bills that you can pay early to even out the load. I am paid every other Friday and have to do the same thing. Miko’s advice on using a calendar helps with that and you can color coordinate which check you are using to pay which bills. This way it’s not such a huge hit the first of the month every month. It make take a minute to get used to but it works.  

Comments

FYI: this may mean paying a few bills twice in the same month for the first month you do that in order to get in the rhythm and not be late. I am not suggesting to hold payment til 2nd check at all by the way. It will for sure require double payments on some bills. Maybe stagger that out so it’s not just a huge transition. Pick one or two at first. Then add another one the following month until you have them a little more evenly balanced. I hope this makes sense.  

Answer 48

Okay so this might not make sense with me writing it out. We also get paid every other week. I plan out the paychecks for like 4 months at a time. So I write out every paycheck and what bills will be paid with that check. There is always one check that doesn’t have enough money to pay all the bills. So I look at the check before it and ‘rollover’ enough to cover the next pay period as well. I hope this makes sense. I’ve been doing this for 3 months now and it has worked so well for us!