People often joke about being "Dead Broke by the 23rd," but for many, it is a harsh reality. It's that period when your salary is gone, yet payday is still ten days away. While some argue that the solution is simply to "earn more if you want to spend more," that isn't always easy in practice. Therefore, this article won't focus on how to earn more, but rather on how to manage what you already have.

Why Do People Run Out of Money by the 23rd?

Ninety percent of the time, this happens because of a lack of financial planning. Usually, the urge to spend is at its highest during the first week after payday. This isn't a "sin"; it’s a common human emotion. However, if you constantly indulge that impulse, it becomes nearly impossible to break the cycle of being broke by the 23rd.

The remaining ten percent of the cause often lies in "micro-spending" and sudden emergencies. Micro-spending includes small things like snacks or taking a taxi instead of public transport, amounts that don't seem like much at the moment but add up significantly over time. Emergencies, on the other hand, usually involve health issues or social obligations.

Regardless of why it’s gone, the result is the same: you have no money left. This is why proactive management is crucial.

How to Manage Your Money to Last Beyond the 23rd

There are many financial management methods out there. Whichever you choose, the most important factors for success are honesty with yourself and self-discipline. Here are a few practical methods that work:

1. The 50/30/20 Rule

This is the most popular and widely used method. You divide your income into three parts:

• 50% for Needs: Housing, food, transport, and basic utilities.
• 30% for Wants: Shopping, dining out, and hobbies.
• 20% for Savings: This portion is set aside. It acts as an emergency fund or long-term savings. If you follow this, you won't find yourself empty-handed by the 23rd.

2. The Four Envelopes Method

When you get your salary, divide your spendable cash into four equal envelopes—one for each week of the month. You only use the money in that week's envelope. If it runs out before the week is over, you stop spending. This works best if you have a steady income and strict discipline.

3. The 48-Hour Rule

This is a great way to curb impulsive buying. If you see something you suddenly want to buy, wait 48 hours before making the purchase. Usually, by the time the two days have passed, the initial urge has faded. We’ve all had the experience of buying something only to realize later we didn't really need or even like it.

4. Bulk-Buying Essentials

Food is typically a person's highest recurring expense. If you buy your non-perishable groceries for the entire month as soon as you get paid, you’ll stay "dignified" even if you run out of cash by the 23^rd because at least your pantry is full.

I hope these methods help you avoid the "Day 23 Dead Broke" cycle. As I mentioned at the start, you just need to stay honest with yourself and keep your discipline!