Overtime Money

I wish I had discovered this method for overtime money a long time
ago, I have been doing this for about a year with my overtime
money, and I think this is such a powerful tool that I need to
dedicate more time to incorporating this into this budgeting system.
I would say that this alone lowered my stress level by about 50%.

So the way we break down overtime is like this; 1/3 goes to
savings, 1/3 goes to debt, and 1/3 goes to you for spending. There
is a simple way to figure this out as well. There are always
unexpected expenses that cut into any extra money you have, so
rather than trying to figure out how much overtime money you have
left on each pay day. You just figure it out once a month after all of
your monthly bills are paid. Here is how you do that;

You should always keep a minimum amount in your bill paying
account (primary checking account) I keep a minimum of $1000
dollars in my account, I treat that amount as zero. This is just a
safety net to make sure that I never overdraft my account. At the
end of each month after I pay my bills, anything above $1000 in my
account I consider to be overtime money. So at the end of each
month, 1/3rd of that goes to Saving, 1/3rd to debt, and 1/3rd goes
to my spend money.

It is really important that you can get some reward for working
overtime. Most of my life I focused first on debt and savings, and I
always tried to live on a fixed amount for my spend money. This is
really almost an impossible task, and I would always feel very
stressed when I needed to take money from savings. Using this
method, takes away a lot of stress, and I don’t feel so bad if I go
out to eat or enjoy a few more things when the money is coming
from my spend money account. Life has been a lot more enjoyable
since I have been using this method, and I very rarely have to take
money from my savings account.

Once you get to a point where you have a smooth running budget
you should save enough in savings to live for 3 months without a
paycheck. Once this is achieved the savings portion of your income
should be applied to your debt until you are debt free. Don’t pay
your debt based on the interest rate, Always pay debt based on
which loan you can pay off the fastest, then move to the next loan
you can pay off the fastest. As you do this, each time you pay off a
loan you will be able to apply that full payment to the next highest
balance you owe. If you are able to get to the point of having at
least 3 months’ salary in savings, then you need to learn to start
diversifying your savings to protect your investments. The stock
market has always been unpredictable. Its fine for you to take some
risk there, but you also need to put some money is hard assets like
Gold, Silver, real-estate, and even in crypto currency, you may even
want to look into whole life insurance policy, there can be many
benefits to this for taxes, and also for taking loans against your
balance in which you pay yourself interest instead of paying it to the
banks.