I work a job where I get paid monthly. The pay can fluctuate a few hundred dollars but it's around 2200 a month and my rent is included.
Last year I was hit hard with a very low month as several annual bills hit all at once. GoDaddy website, Amazon prime, and I had made a large purchase on a credit card the month before and had to pay that off as well...
From the month of hotdogs, rice, broccoli, and beans, I learned that I could open a separate savings account for free with my bank where I can put small monthly payments that go toward those annual expenses.
I set up an automatic transfer timed with my direct deposit by taking the amount, dividing it by 12 (and adding a dollar for safety) and rerouted the payment method to be the "annual payment savings account)
Now I never have to worry about getting hit all at once for these annual subscription payments and I even earn a small amount of interest on these payments to save some money out of the system!
I saw the annual payments come out of the account and was so pleased with myself I had to share it. Maybe I'll inspire someone to adopt the practice and help them out too!
For me, this tiny system adjustment was a GAME CHANGER for my finances.
Submitted May 10, 2019 at 06:04PM by Dejazo http://bit.ly/2He64k5
