I operate a business that generates considerable expense. Sure it’s a business, but running a household is a business too, even if your single. Here are some expenses that are generated and how they are dealt with:
Telephone: I know from experience more or less what my telephone account is going to be every month.
Every week I pay one quarter of that amount to Telstra either by internet transfer, mail or at the Post Office.
When I get the account each month – you know what? It’s normally in credit or the amount is so small that it just isn’t going to hurt.
Insurances: There are payment plans where arrangements can be made to pay weekly or fortnightly – it is also wise to undertake a regular analysis of your insurance protection.
Car payments: The finance company is paid weekly – not monthly. It’s just a matter of setting up a periodical payment with the bank. I pay a little bit more than I have to – maybe $5.00 but I never get letters and my credit is great.
Mortgage: Apply the same philosophy.
Utilities: The power company isn’t going to refuse money either. Pay a bit each week at the Post Office; or arrange a periodical payment direct from your bank account..
If you can apply this method to your payments and do it every pay day whether its weekly, fortnightly or monthly you will find that what you have left over in your hand, is yours to do with as you want.
It’s simple easy budgeting that works. But it will work only if you stick to it.
Direct debit. It is not recommended that you enter any arrangement where a direct debit from your bank account will be made. You are giving an authority for monies to be ‘taken’ rather than allotted and, at times, it can be frustrating trying to cancel a direct debit – which you are entitled to do at any time by delivering a letter of cancellation to your bank.
Apply for a Debit Card
Everyone is accustomed to having credit cards available to use on a whim. The interest rates are more or less in 18% range. Ultimately you have to pay them – or lose them.
Consider getting a Debit Card and in this way you are using your own money. You will still have access for Mastercard and Visa payment options.
A Debit Card will allow you to pay all the weekly expenses either at an ATM for cash, fuel and internet transfers.
Debt Management Advice
5/01/10