in Stock Market

Another correction in the markets is coming down the pipes, which means more fun and excitement in the financial world. The Canadian dollar drop almost 2 cents on weakening commodity prices, and severe flooding is being predicted here in Ottawa. Now that I have got out all that good news…

Cruise Control Finances

A while back I theorized about how I could put my personal finances (specifically bill paying and debt payment) on cruise control and then not have to worry as much as I do about things. Last week I didn’t have time to keep track of things, being out of the country and now I am thinking I should have figured out a way to keep my “eye on the ball”, as it were.

All my bills are getting paid and such, but I seem to have a need to continuously watch my financial standing to reassure myself that I am not completely “financially out of control”. My theory is simple(r) than most:

  • List all my known monthly bills:
    • Electricity
    • Natural gas
    • Telephone(s)
    • Internet Access
    • etc.,
  • Take each bill and divide by 2
  • Ensure each and every bill is payable on line (I have a small issue, because my electricity bill is a direct withdrawal on a specific date).
  • Every pay day, make that 1/2 payment on each of these fixed bills.

By doing this I normalize the cost of these monthly bills across all of my pay cheques. I also end up getting ahead of things, because by the time the end of the year rolls around, I may well be a month ahead on these bills and I might be able to take a month’s vacation from those bills, or I could fine tune my payments so that I divide my yearly bill by 25.5 and make that size payment instead?

Either way it’s a different way to deal with monthly bill payments, and might make my financial worrying less severe? (yes, Prozac would do the same I guess).

Have a Happy Easter and enjoy the long weekend.

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

{ 3 comments }

{ 3 comments… add one }
  • James March 20, 2008, 12:51 PM

    I calculate what my total expense was on a given bill for the entire last 12 months. I then divided that amount by 26 to correspond with my pay schedule. After that I want to get ahead of my bills so I add 10% to that final amount.

    Utility A paid

    1200 last year
    46.15 per pay + 10%

    So I’ll pay $50 every pay and be ahead by 10% on last years bill. More than covering for inflation. Also every once in a while I may get to take a break from paying altogether. Since I started this the worry has faded a lot.

    Reply
  • Quick Lunar Cop March 20, 2008, 10:14 AM

    I used to divide the total amount I paid in a year by 26 and then pay each bill every paycheck. However, with that method, I’d have to pay a little bit ahead, because I would otherwise be late for some payments.

    Now, I use something similar to a “freedom account”. I have an ING Direct account with a $500 cushion. I contribute bi-weekly the amounts of my bill, and I just transfer the amount of my bill whenever I receive it.

    With that system, all my bills are paid on time and I get some interest to boot! 😉

    Reply
  • bigcajunman March 20, 2008, 10:52 AM

    An even better idea, I like it. 😀

    Reply

Leave a Comment

%d bloggers like this: