Posted by Grammyzoom on 5/11/10 8:22am
Msg #335801

Handling finances, everyone is different!

There is always so much discussion about payments, collections and accounts receivable out there I thought I might share my method and ask how others handle their finances. This might be beneficial for those that are floundering in that area.

For years now I plan my bill payment one month in advance. At the beginning of every month I schedule all of my bills into my banking system for the following month. Right now all bills are scheduled through June. I don't have enough money to pay those bills so they are scheduled to be paid as they are actually due through online banking.

I keep a separate "Balance Sheet" in Excel, which lists the shortage in my checking, anticipated expenditures above and beyond my bills, and the amount I have coming in for work completed and which month it was earned. These figures are updated every few days. That way I can always see how much money is in the pipeline and how much more I need to earn to take care of us for the current month and the following month. Once I cover the shortage I know we are safe for both the current month and the following month. I always know if I can relax or if we need to hustle.

At the beginning of every month I begin to call anyone who owes me money more than about 35 days. It is a gentle nudge, always mentioning that I may have let a payment slip through the cracks..........because that does happen once in a while. My first phone call is friendly and just meant as an inquiry and reminder. (Never call at the end of the month.)

This system has worked for me for many years. Maybe this will help someone.

Reply by Sylvia_FL on 5/11/10 9:10am
Msg #335808

Grammy
Basically I do what you do.
Bruce's retirement check goes into the bank the first business day of the month. So, beginning of the month I sit down at the computer and pay (or schedule) all the bills for the month out of his retirement check as most of the bills can be paid online. I open up my Money program and input all those bills in. What is left after those bills have been paid is what we have for food and extras (gas and incidentals) I don't even add in our social security checks. We try and live off his retirement check. Then when the social security checks come in, I keep some of it in the checking account and move as much as I can to the savings account. This always works for us.

Reply by Notarysigner on 5/11/10 9:11am
Msg #335810

That sounds great! As soon as I run out of fingers to count my income vs expenditures I might try to develop a system like that.

Reply by Grammyzoom on 5/11/10 9:13am
Msg #335812

James, I know you better than that! You have a lot more fingers than most people.

Reply by jnew on 5/11/10 10:14am
Msg #335820

My 35 year old son makes twice what I make and is always broke. I am printing this article for him.

Reply by Grammyzoom on 5/11/10 12:07pm
Msg #335834

Good luck with that. I taught my kids how to do this years ago and it has worked for them.

The alarm really sounds when you see in black and white that you are not going be able to make the payments. It makes it easier to spend, or not spend, accordingly. Those were the times when we had a lot of "poor man's spaghetti". That is spaghetti with only onions, tomato sauce and lots of black pepper. We thought that was not a good thing to feed the kids growing up in the hard times but it turns out that as adults in their 40's they love it! Go figure.