How to make sure you ALWAYS make rent

If you're like me and you pay rent on an apartment or house every month– and sometimes don't budget your money well – try this tip to ensure you NEVER fall short when it's time to pay rent.

I created a savings account in both me and my husband's names. I calculated exactly how much out of each paycheck (both of our paychecks) should go to rent. My paydays are biweekly, so every pay day I deposit half of my check into the rent account, half of it into my checking account. My husbands are direct deposit and they are every week, so I use phone banking to transfer X amount of each of his paychecks into the rent account too. I just make it a habit, and eventually it becomes second nature.

This way, at the end of every month, all of the money I need to pay rent is sitting in that extra account, completely out of danger of me dipping into it by overspending.

This can work for ANY type of big bill you worry about every month. Just divide the amount of the bill by as many paychecks as you'll be receiving to figure out how much of every check to deposit into the savings account. And never come up short for another payment!
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Posté le 17-10-2007 02:39 | 2 Commentaires | 0 fois favoris | Rapporté 0 fois comme inapproprié
 

Commentaires

#1     nice tip, here in Spain you can even setup automatic transfers, so you don't have to bother to call your bank because your paycheck is automatically splitted and sent to your savings account
Posté le 17-10-2007 15:19
#2     Great Tip!

We have Direct Deposit here, and where I work I can setup up to 10 splits to my paycheck. So basically I have my account, and the little woman's account, and then we have a Joint account. We use a similar method to keep our bills on the short and narrow. 20% of each of our checks is split 10% to each of our personal accounts, this is our spending money, and the rest is put into the joint account to only be used for bills. Additionally we have 10% of each of our checks go into our Savings account.

The only thing I could recommend is that you open a separate -Checking- account to do this with your bills, as banks will look at a savings account with rapid deposits and with drawls with no addition to the balance badly. Like when you apply for a Loan they look at your savings account, see if you regularly deposit money and don't touch it. Just a heads up there ;)
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Procrastination Takes Time.
Posté le 18-01-2008 07:06

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