So February 1st is closing in...

**MomToTwoBoys** · 01-30-2009, 10:31 AM

and I don't have to pay bills out of my pension!

Ok here's the skinny:

We converted to a budget where we paid half of the month's bills on one payday (DH's payday) and the other half would be paid on the second payday before the bill is due. It turns out to be the easiest way for us because while we're mindful of the due dates, we're not pressured to pay all of the bills on one date and strap ourselves for cash until the second payday. There's no more having to leave X amount of cash in the checking account to cover the next payday's bills.

We paid half of the bills on the 22nd. We were going to pay the other half of the bills today. However, when we looked at how much we needed to leave in each checking account to cover A/Ws ($188.59 in mine, $174.42 in DH's) and figured out how much DH had left until the 5th (which was his next payday), we realized that we could save my entire checking account amount. That's $707.00 in checking that I wouldn't have to touch, minus the $105 A/W for property tax and the $53 check for Matthew's lunch program, along with the $33.59 for the alarm system.

Enmax (due the 5th) : pay other half on the 5th
Mastercard (due the 13th) : pay other half on the 5th
Best Buy (due the 21st) : pay other half on the 5th
Shaw Cable (due the 6th) : pay other half on the 5th

That's $127.52 + $41.00 + $39.00 + $76.10 that we can pay out of DH's check on the 5th. Even with groceries, smokes, gas and other miscellaneous expenses, DH would have more than enough after the 5th to cover him the next two weeks. He told me he needs boots, and his boots are usually $200+ dollars (work boots with steel toes), but he gets a $100 voucher from work to get them. I told him that that was fine and that I'd give him the money to cover the boots out of my checking account. That'd still leave me with quite a bit in checking. I'm tucking $50 into my savings account today for the slush fund buffer and there will be a $53 deposit into DH's savings account on the 5th to cover the February 5th EF contribution. We planned on putting the $53 we'd normally be paying on the MDG account into savings until Best Buy was paid in full because while we want to kill our debt, we also need to start working on that EF again.

This new budgeting system that we have working for us is fantastic! Once DH starts getting overtime again (which will be in March), we'll be able to cram the rest of our EF into his checking account and we can account for the loss of $100 per month starting in July. We'll also have a shift in our tax credit deposit for the other half of the child tax credit (not the child care one, but the regular one that I get that's more than $100 per month). In June or July, I may be looking at another large deposit from the Alberta Family Employment Tax (I get it twice a year and that's what I used recently to pay off the MDG debt). That large deposit will also go right into my savings to help cushion the cost of both kids' school clothes. I also realize that pretty soon, I'm going to need to spend some cash on preparing the book for print, but that amount is really hard to budget in just yet.

I can see great things coming already and it's only two months into the years!

How's everyone else's budget looking?

**Michelle68** · 01-30-2009, 10:59 AM

It sounds like y'all are really on the right track with this new budget. Good for you!

**homesteadmamma** · 01-30-2009, 12:01 PM

You've got a great plan. WTG on a job well done.

**IntlMom** · 01-30-2009, 12:38 PM

I'm thinking you deserve a great big ole pat on the back!!

**dcompton** · 01-30-2009, 12:50 PM

It makes all the difference in the world when you find a plan that works in your particular circumstances and fits yourown style. Congrats on finding what works for you!

**mommy4ever** · 01-30-2009, 01:00 PM

We do something similar too. Dh gets paid weekly, mortgage is biweekly, so I deduct it in the register, as though it is gone, so we save 1/2 each check and know at a glance by the check register how much we have available, as the bank machine can't tell us what is planned spending. Took awhile to perfect the system. I do the same for insurance, 1/4 each check is notated in the check register.

**SheKat** · 01-30-2009, 08:54 PM

Its great having a plan and then seeing that it really works.

**PrairieGirl** · 02-02-2009, 03:59 PM

I used to do that too....but then I switched to just paying them once a month, but get the amount automatically withdrawn from my account on payday. Works out well since the money is gone the same day I get it and the bills are never late.

Glad you found a system that works for you!!!!