Great idea for Big monthly payments....

United States
March 12, 2007 7:19pm CST
I have consolidated some of my bills and get a newsletter like every month or so. I got one today and there is a great idea in here...they call it "no sweat" payment plan... I will just copy it straight from the newsletter... "Once I puchased my home, I realized I had several large annual payments, such as house insurance, car insurance, property taxes, school taxes, etc. I added up all these expenses and divided them by 52 and got a weekly total. I direcet deposti my paycheck, and the bank also will put a set amount of money in a designated savings account each payday. I opened a separate savings account only for these fixed expenses and have the weekly amount needed automatically deducted from my paycheck. In this way, when the bill comes due, I don't panic. Instead, I just go to this special account and withdraw wahtever I need to pay the bill. The money is always tehre, and I am not scrambling at the last minute." This was submitted by Diane S in Island Park, NY. I thought it was a great idea.
3 people like this
2 responses
villageanne
@villageanne (8553)
• United States
13 Mar 07
This is a great idea. Our homeowners insurance is paid directly to the insurance by my mortgage company. We then pay the mortgage company for it. The property taxes are done the same way.
2 people like this
jeweledbluerose
@jeweledbluerose (3061)
• United States
13 Mar 07
That is a great idea. It's also something that I have been doing for quite sometime now. I have one account for my daily needs and bills, and a "rainy day" account for when larger bills are received, emergencies or whatever else may arise. I put money into both weekly and only take out from my daily needs account when there is something I am wanting to buy.
2 people like this