Monday Money Minute: Money Chunking

Monday meets money chunking

On this Monday Money Minute, one of our first videos ever, David shares our money chunking hack. Money chunking will make today’s paycheck last until you get your next paycheck.

Note: This article contains affiliate links. This means we’ll receive a small commission at no cost to you if you buy items through these links. We only recommend products that we use or have thoroughly vetted and would recommend to our moms.

What is money chunking?

You might think the star of this video is David, but it’s not. It’s money chunking. You know when you go out with the boys and say, “I’m NOT spending all my money at the club tonight” and then you spend all your money at the club that night?

Money chunking is your fix.

Money chunking is when you break the amount of money allotted within each category of your budget into smaller pieces that spreads your allotted money within each category over longer periods of time. This step is the final step of budgeting and will stretch your dollar as far as you need it to go.

If your problem with budgeting is that you have too much high-interest debt, this is your fix to too much high-interest debt.

Watch David talk about money chunking

Your fixed expenses, such as rent, cable and your car payment, have the same amount of money due on the same day each month. For fixed expenses, use our send-it-before-you-spend-it hack so you don’t miss a bill.

Our money chunking hack is great for your social spending and other non-discretionary categories. After you budget the amount of money you have to spend at the movies, happy hour and that weekly drag show that’s too hilarious to miss, divide that amount of money you have allotted for that category by the number of weeks until your next paycheck. That’s your week-to-week budget for that category.

That’s money chunking.

This hack makes sure you don’t spend all your money on payday and then have nothing left to entertain yourself until your next payday.

Note: This article contains affiliate links. This means we’ll receive a small commission at no cost to you if you buy items through these links. We only recommend products that we use or have thoroughly vetted and would recommend to our moms.

Other money hacks for you:

 

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