Friday, 28 April 2017

Bills account

I have a bills account that I pay a set sum into each fortnight when I get paid.

This fortnightly amount is slightly more than all of the upper limits of my known expenses (PO Box, water, electricity, wood, gas, healthcare, grooming, clothing, insurances etc) annually, divided by 26. So I always have enough to pay my bills with some to spare. 

I paid my PO Box last fortnight but with my credit card, because that's the only payment method they take. The PO Box renewal is $129 annually.

What I forgot to do was transfer the money from my bills account to my credit card! I have the money for this expense saved in my bills account, so I'm robbing myself if I don't transfer it immediately - and risking being charged interest! 

As you know, I've paid my credit card down so that there is only a $100 balance remaining in total so I've transferred $100 this morning. It will take a day or two to come across but will mean that my credit card will be completely paid off. Woo!! It also means that there is an extra $29 sitting in my bills account... which is fine. I like having a bit of a buffer there in case of an emergency.

The bills account has a built in buffer thanks to my over-estimating, so it also acts as my emergency fund. It has a floating balance usually of around $1000 - $1500, but is currently a little depleted due to some unexpected bills thanks to some personal issues that I'll go into later.

I'll update balances and net worth when the transfer is completed :)

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