A Better Way to Manage Your Everyday Money - Book - Page 59
When paydays happen
There is no standard schedule for paydays. Payday schedules are set by whoever is issuing the
paycheck.
PerNetFlow is a standard planning tool that works for everybody. For that to be possible, the
unpredictability of paydays cannot be a part of the program's money management process.
Removing the unpredictable receipt of paychecks from consideration in the program is
accomplished by ignoring paydays. This is done on paydays by:
● Depositing your paycheck in full
into your checking account, and
● Recording the deposit in
PerNetFlow.
You do nothing else with your paychecks.
What this does, as discussed in Chapter 1,
is turn your checking account into a cash
reservoir similar to the reservoir behind a
dam. The water entering a dam reservoir
arrives on its own natural schedule. The
water accumulated in the reservoir can be
used on a schedule that is not dependent
on the river flowing in as long as the
water outflow is not more than the river inflow.
Your income works the same way. Your checking account is your cash reservoir that is fed by
your income deposits. You can plan how you will be using the money that accumulates in your
checking account independent of when you get paid.
Sounds weird, I know. You're probably thinking something like,
