Building a Money Buffer

Are you a Money Avoider?

“Avoiders often avoid dealing with issues related to money to the last minute, taking a “see no evil, hear no evil” approach to managing their financial affairs.  But by not staying informed about their finances, Avoiders are missing out on opportunities to set the foundation for a more financially secure future.”

If you are, there is no shame to it! You just have to find a way to reach financial success in a way that’s going to empower you, not stress you out.

An option to consider is the BUFFER METHOD.

Here’s an example:

Jessica works her dream job as a first grade teacher. She LOVES her job, but remembering when bills are due each month and tracking her expenses often leave her stressed and frustrated after a long day. Sometimes she even misses payment dates, and resulting in late fees and marks on her credit.

To fix this, Jess decides she’s going to use the buffer method to manage her daily spending. First, she sits down and adds all of her monthly expenses: rent, utilities, car payment, groceries, etc. She then puts as many of her bills as she can on autopay. For incidentals, she establishes a budget and takes out cash so she can’t overspend.

Jessica then moves one month’s worth of income to her checking account. This way, she will have more than enough to cover her monthly expenses and can simply “replenish” the account as she’s paid and before the next round of bills are due.

With this solution, Jess never needs to remember what bills or due or check her balance. Instead, she can rest easy knowing everything will be paid on time and focus on the things she loves.

Are you a Money Avoider? Consider this strategy to make sure you never miss a payment again!