My money runs out before the end of the month, what should I do?
Direct answerWhen money runs out before the month ends, the usual causes are spending concentrated right after payday, bills with misaligned due dates, and no weekly limit. The first step is to split the amount available for variable spending into four equal parts, one for each week.
How it shows up
Your paycheck lands, the first week is relaxed, and in the last ten days you rely on a credit card, overdraft or help from someone to make it to the next payday.
Most likely root causes
- Feeling flush early onRight after payday the account looks full, and first-week spending is usually much higher than in the other weeks.
- Poorly spread due datesBills that are all due close to payday, or all far from it, create predictable crunch points.
- No weekly limitWithout a weekly cap, there's no warning sign until the balance runs out.
- Using the card bill as an extension of your salaryPaying the full card bill at the start of the month and then going right back to the card creates a cycle that keeps repeating.
Quick self-check
- Do you spend more in the first week than in the others?
- Do you usually rely on credit in the last days of the month?
- Do you know the due dates of all your bills?
If you answered yes to two or more, start with that cause.
First step today
List the due dates of all your bills next to the date you get paid and see where the gaps are.
30-day plan
- Week 1: set a weekly amount for variable spending and track how much has gone out each day.
- Weeks 2 and 3: ask companies to move your bill due dates to dates that match when money comes in.
- Week 4: compare the last week of this month with last month's and adjust the weekly amount.
When to seek professional help
Get guidance from a financial educator if the crunch continues even with weekly spending under control. If you dip into your overdraft every month, talk to your bank about swapping that debt for a cheaper one; for improper charges, contact your consumer-protection agency.
Frequently asked questions
- Can I change my bill due dates?
- Many companies let you pick your due date. It's worth asking, because aligning dates with payday eases the end of the month.
- What if I get paid every two weeks?
- Split your budget into two halves and treat each pay period as a small month with its own spending and bills.