How to design your cashflow

Did you know that by day 17th of month most people have ran out of money? By day 18 they are going into debt. By implementing a weekly emotional expense system you are able to see where you are each week; empowering you to be proactive in your decision making.

Below is how I would suggest you set up your flow of cash.

The fixed expenses come automatically out of your main bank account while an automatic pre-authorized payment amount goes from your main bank account into the Emotional Expense Account once a week. I personally have the transfer set up to occur on Friday morning so I feel excited going into the weekend; if by Tuesday I have used most of our emotional money I resort to the pantry items or costly events. If I am aware of a more costly event in the week ahead, I can plan for that as well.

Examples of items that go into each category

Head over to the blog post Which Account Should I Add To First? to learn when to transfer funds to emergency account, pay off debt or invest.