Most people live paycheck to paycheck, however the "experts" claim that you need to be one month ahead of your monthly bills, meaning you need to have one month of income saved as a cushion or buffer for bills.
I actually have my one month ahead savings in a checking account and I never let the account go below my "on month ahead" amount.
How did I save for this "one month ahead" account?
By severely living below my means for about 3 months. That meant getting paid and then taking a cool crisp $20 out of the ATM, neatly folding it and placing it in my wallet. This $20 would only be spent in case of emergency, all other money was paying bills, invested, anything leftover was saved.
For transportation back and forth to work, I had my monthly Metrocard. For lunch, I had the Executive Lunch
Thank goodness I'm not a fashionista!
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