My Favorite Way to Budget Big Bills

In Life Advice by KristyLeave a Comment

Ever have a minimum payment(s) that you just can’t afford all at one time? Well, I have something that will ease your pain and make this less painful. “Drum roll, please.” *Insert a cheesy drum roll sound here*..My favorite method to budget big bills is the half payment method. It is wonderful and soo helpful! I would not be here where I am today without it!

Favorite Way to Budget Big Bills

This works best when you have huge bills that take too much money out of your wallet at one time. So instead of paying these bills with one pay check, you spread the expense across multiple pay checks. It allows you to stay on time with your payments and also allows you to afford your other bills due at the same time. I use this to pay my rent and one of my credit card bills. Please note that I did ask for permission first from my Landlord to pay my rent this way, so that she didn’t think I was always late with my payments. To clarify, I will break down this explanation a little further using my Kay Jewelers minimum payment as the example.

Example

My Kay Jewelers minimum payment is $220. To split this payment in half I would have to pay $110 two times for the month in order to pay the minimum payment in full by the due date. Say my total pay check for each pay period is $500 (this is not a true number by any means, just a random number for the example). The break down would look like this:

Pay Check #1:  500Favorite Way to Budget Big Bills-funscapade.com

Half Payment Method for Kay: $110

Total left from 1st check: $390 (to pay remaining bills)

Pay Check #2: $500

Half Payment Method for Kay: $110

Total left from 2nd check: $390 (to pay remaining bills)

This will work regardless of how often you receive a paycheck. If you receive a check once a month, consider starting the half payment method by only making a quarter of the payment or small payments every week. The example above would be based on a biweekly payment schedule. To get started, start with one small, fixed expense that you pay every month just to get used to this process and then add more expenses as you see fit. I personally do not use this with all of my bills, but you could if you wanted to. I only use this method for the harder to afford bills at one time, so I don’t get confused and too overwhelmed.

Please share this post with your friends and don’t forget you can email me with post suggestions, comments, or concerns!

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Kristy is a lifestyle blogger wanting to make the world a better place by offering help with financial issues (debt and saving money), clutter, and making healthier choices. She also writes about life advice and her own personal experiences. She believes together we can make the rest of our lives the best of our lives.