I finally got paid for the work I did last month on one of my side gigs. Pay total: $718.60. Total hours worked : about 18 hours.
Holy smokes! That's an average of about $39 per hour. Considering there are no source deductions as it is considered trade work, I have to take out money for tax liabilities and my RRSP (which I consider my pension).
Here's my breakdown of what I'm doing with this money:
$140.00 to RRSP
$15.00 to EEE Acct.
$35.00 to Lawyer Savings
$130.00 to Business Savings, for Tax Liability
$200.00 to Shortage in Rent Acct.
$50.00 to Debt Repayment (Credit Card)
$50 cash for Transportation
$95 cash for Life (groceries, pull-ups, etc.)
$3.16 remaining in chequing account
This is my newest method of budgeting. I don't have to factor in next month's rent, because the money is already in the savings account for it. I can focus more on things that we want to achieve, like Debt Acceleration and Savings. If I need money that isn't already in the budget, I can 'borrow' from the rent account ( like I will be doing for the Lawyer retainer funds) and repay with every pay cheque I get. I can set a budgeted amount in cash for transportation and groceries, personal care, etc. and when the cash is gone, I stop. No pulling money from bank accounts with debit cards, as that money is already earmarked for something. I save for Tax liabilities as I go along, and by depositing to RRSP, I'm hopefully reducing that tax liability somewhat while saving for future me.
I figure I'm forgetting some things, but they will get implemented into next month's budget as they crop up.
Tell me what you think of this method of budgeting.
Edit: I also managed a $20 parking ticket yesterday during the celebrations. Considering the cost to park downtown, I think it's actually cheaper than parking under City Hall for 6 hours.