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New System for Paying Bills

May 5th, 2009 at 03:49 pm

Last month I tried something different with our money. We have two checking accounts. They aren't his/her accounts but one is an account I had started for my freelancing money. Last month I tried using that account for paying bills. So when my husband got paid, the first thing I did was to move the bill money to that account. I also move the grocery money and household expense money. That way what is left in the checking account is gas money and lunch money for my husband. That way he knows how much money he has to make last until the next pay period.

What always happens to us is that we spend way more than we should when my husband first gets paid. We have money in the bank, so like dummies, we think we can afford to splurge. Then what happens is we don't have enough money to pay all of our bills. It's really been depressing since my husband makes enough money for the bills and for our other expenses.

It worked really well last month. It was definitely less stressful so I'll do it again this month.

We are huge fans of Dave Ramsey and have tried the envelope system before. We may go back to it for groceries, gas, and lunches. That would help us build up our checking account if we aren't constantly tapping it for expenses. That's the great thing about cash. It keeps you on a budget.

8 Responses to “New System for Paying Bills”

  1. L Saver Says:

    It sounds like you stumbled upon a great plan! I have the same problem -- if I see a high balance in the account, I think I have money to spend, even if it's already spoken for for bills, etc. Glad you're new system is working Smile

  2. whitestripe Says:

    great stuff! i'm the opposite - when we have a lot of money in the account, i automatically turn into a hermit and want to stay at home, do absolutely nothing and spend nothing, so it stays that way.

  3. Amber Says:

    Good for you, I have two checking accounts 1 for personal use and the other for bills. I say what ever works.

  4. Aleta Says:

    I deposit all pay checks into our bricks and mortar money market account that earns interest. At the beginning of the month, I transfer the total amount that I will need for the month into the checking account that handles all of the debits for bills. The only bill that comes out of my money market is a larger bill such as the credit card, car insurance, or homeowners insurance. In order to do this, you need to have about 1 months worth of expenses ahead of when it's due.

  5. Aleta Says:

    I forgot. Also, should I need any extra money during the month from the money market - I just transfer it from the money market. You can write out 3 checks or debits and 3 transfers. This allows your money to earn more interest for a month.

  6. dmontngrey Says:

    I think this system works very well for a lot of people! I manage my mom's money and I leave her just a flat amount each week to live on. If I leave all her money in that account - she'll spend it! I think we finally found a middle ground where she has enough to blow on needless crap and live, without pulling money from savings. This has been a wonderful change for her and she now has a nice little emergency fund built up. Smile

  7. Ima saver Says:

    I have always use the cash system. I put into my checking account only the money I need to pay the bills, nothing else. I use the envelope system for everything and it has always worked for me cause I don't borrow from the envelopes.

  8. Debtnomore Says:

    I'd love to get have the money to be a month ahead of bills. I've got to get out of the habit of if I have money then I need to spend it. I am getting a little better and so is my husband.

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