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Bill Payment Schedule That Actually Works

1. Pay your bills when you get paid (if you don’t get paid weekly, calculate the paid amount into weekly amounts)
a. Weekly paycheck = (Monthly paycheck * 12) / 52
b. Weekly paycheck = [Every other week paycheck] / 2
2. Count yourself or your family as two bills (weekly spending and weekly savings). This is considered as “yourself bills”.
3. Take each one of your utility bills (electric, gas, water trash, sewer/septic, phone, cell phone, cable/satellite, Internet, or any group of utility bills if they
are grouped into one bill) and any other bill (credit card, mortgage, yourself bills, autopay fees, billing service fees, other temporary creditors, etc.) to
come up with a weekly payment:
a. Proper calculations for determining Weekly Payments:
i. Average just the current and previous months billing amounts and not the whole amount including balance forwards.
ii. Take this average and multiply by 12 for a yearly amount.
iii. Take this yearly amount and divide by 52 for a weekly amount. THIS IS YOUR WEEKLY AMOUNT TO USE.
b. The way to calculate Weekly Payments relying on creditors using the 4 weeks as a month ideology (USE THIS ONE):
i. Average just the current and previous months billing amounts and not the whole amount including balance forwards.
ii. Take this average and divide by 4. THIS IS YOUR WEEKLY AMOUNT TO USE.
iii. To see what is the actual monthly payments that your creditors will see is as follows:
1. Take the result in 3.b.ii, and multiply this by 52.
2. Take that result in 3.b.iii.1 and divide it by 12. This should be more than the result in 3.a.i and 3.b.i. This is good.
4. Adjust your weekly “yourself bills” accordingly to make the total weekly bill amounts equal the weekly paycheck amount. REMEMBER: The more
bills from companies you owe, the lower your spending and savings amounts are; unless you can bargain with all or part of those companies for lower
monthly payment amounts. You can lower your spending and savings amounts by using step 3a and 3b strategy (use 3.a weekly amount for some bills
and 3.b weekly amounts for other bills). You can also add or remove services from your utilities. If you find out that you have too much debt to income
ratio or cannot negotiate with your creditors, then you should look for a valid debt-counseling agency to help in lower your payments. Your debt-
counseling agency’s monthly payment arrangement will be calculated to weekly payments via step 3 and you pay them via automated payments with
your checking. Temporary Creditors, when paid off via this method, can be removed them from your list of bills and their weekly amount owed can be
added to the “Yourself Bills” or the other bills.
5. For Monthly paychecks:
a. Open two checking accounts (one checking with interest (first account) and a free checking) and a savings account. DON’T ORDER ANY
NEW CHECKS. PUT THE TEMPORARY CHECKS IN A SAFE PLACE.
b. Deposit the monthly paycheck into the first account (checking with interest).
c. Every week on Friday have the first checking account deposit a weekly paycheck amount into your second checking account. Use STEP 3
Calculation(s) for to calculate your weekly amount deposit. [I would suggest using STEP 3.a. instead of STEP 3.b., but it is up to you.]
d. The second account (free checking) will be setup to autopay every weekly bill amounts (including depositing your weekly savings into your
savings account and sending you a weekly spending check) every Monday.
e. Sometime during that week you can cash that weekly spending check.
6. For Every other week paychecks:
a. Open one free checking account and one savings account. DON’T ORDER ANY NEW CHECKS. PUT THE TEMPORARY CHECKS IN A
SAFE PLACE.
b. Every Friday or Saturday of the week you got paid:
i. Take every weekly bill amounts and multiply by 2 and deposit that amount into the free checking.
ii. Take the weekly savings amounts and multiply by 2 and deposit that amount into your savings.
iii. Take the weekly spending amounts and multiply by 2 and take amount home as cash. Put half of this amount away for the
following week.
c. Every Monday have your checking account autopay every weekly bill amounts minus the “yourself bills”.
7. For weekly paychecks:
a. Open one free checking account and one savings account.
b. Every Friday or Saturday:
i. Deposit the weekly bill amounts into the checking account. DON’T ORDER ANY NEW CHECKS. PUT THE TEMPORARY
CHECKS IN A SAFE PLACE.
ii. Deposit the weekly savings amounts into the savings account.
iii. Receive cash of the weekly spending amounts to take home.
c. Every Monday have your checking account autopay every weekly bill amounts minus the “yourself bills”.
8. Constantly monitor your BILLS AND CHECKING AND SAVINGS ACCOUNTS, and change amounts when needed. When you see (credit [DO
NOT PAY]) balances, ignore them and let your automatic payments continue to pay them and you will be moving ahead financially. Credit Balances do
draw interest, which helps to increase your credit balances even further. DON’T WITHDRAWL OR WRITE CHECKS ON YOUR CHECKING
ACCOUNT(S). DON’T WITHDRAWL BELOW THE MINIMUM AMOUNT ON YOUR SAVINGS ACCOUNT.

Why this works:


Fact #1: There aren’t always 4 weeks to a month.
Fact #2: There are 365.25 days per year.
Fact #3: There are 12 months per year.
Fact #4: Most Companies that you owe bills to:
o Are using the monthly billing cycle.
o Use the 4 weeks per month as fact.
o Use 12 months per year.
Fact #5: There is actually 52 weeks per year:
o Take 365 days per year divided by 7 days per week and you will get 52.142857142857142857142857142857 weeks per year or take
365.25 days per year divided by 7 days per week and you will get 52.178571428571428571428571428571 weeks per year. Round to 52
weeks per year.
o Take 52 weeks per year divided by 4 weeks per month and you will come up with 13 months per year.
o It is this extra month calculation that allows for your monthly amount owed on your bills to gradually lower over time. Eventually your
monthly bills will have a credit balance greater than the amount that you normally pay every month.
Bill Payment Schedule That Actually Works

(Calculation Example For Step 3)

For Weekly Payments

Normal
Proper Payment
Payment Calculation
Calculation Used
Average Monthly Bill Amount For X Company: $ 123.00 $ 123.00
Weekly Payment Amounts: $ 28.38 $ 30.75
Actual Monthly Amounts = (Weekly Payment Amounts * 52) ÷ 12: $ 123.00 $ 133.25
Actual Monthly Amounts = (Weekly Payment Amounts * 4): $ 113.54 $ 123.00

Proper Payment Calculation For Weekly Payment Amounts =


(Average Monthly Bill Amount For X Company * 12) ÷ 52)
(Some Monthly Statements will show 5 payments and the rest will show 4 payments, this will bring you one
month ahead at the end of X company' s financial year)

Normal Payment Calculation Used For Weekly Payment Amounts =


(Average Monthly Bill Amount For X Company ÷ 4)
(Some Monthly Statements will show 5 payments and the rest will show 4 payments, this will bring you farther
ahead every month as well as one month ahead of that at the end of X company's financial year)

I suggest that you make your Weekly Bill Payments stay between the "Proper Payment
Calculation" Amount and the "Normal Payment Calculation Used" Amount, until the Bill
Credit Balance >= 6 * The Monthly Bill Payment, then and only then you can start subtracting
$1.00 per weekly payments until the Credit Balance levels off [doesn' t change].
This is so that if you loose your job/career, you have 6 months or better to find a new
job/career without worrying about your bills.

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