How to Switch to the Quarter-Payment System
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I recently shared how changing to the quarter-payment system was the best thing I did for our budget, and today I’m going to share HOW I switched to the quarter-payment system. I do NOT suggest starting all at once unless you have the extra funds. We did NOT have the extra funds to just jump right into it, so I came up with a plan to gradually switch over to the new system without breaking our budget. Keep reading below to see how I did it.
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Why You Shouldn’t Switch All at Once
The quarter-payment method requires you to set aside or transfer to another account 1/4 of the cost of your bills. The problem with jumping right into this method is that for us, most of our bills are due the first week of the month. Before switching to the this method, we paid our bills weekly (my husband is paid weekly, so that’s when we paid our bills), so in that first week, most of our big bills were due: cell phones, electricity, water, and our biggest (and LAST! Yay!!) credit card bill, plus a few other smaller bills. That didn’t leave much money to save 1/4 of our bills.
How We Switched, One Bill At a Time
What we did instead of switching all at once is we saved 1/4 of one week’s worth of bills at a time.
For example, the first week of the month, after we paid our cell phone, electricity, water, and credit card, I then transferred 1/4 of just those bills to the checking account I have dedicated to this purpose.
Then the next week, after paying our life insurance and car insurance, I transferred the amount I transferred the week before PLUS 1/4 of the life insurance and car insurance bill.
I did this each week, adding 1/4 of the current week’s bills until 1/4 of all bills was transferred for the entire month. Yep, it takes a whole month to do it this way, but once it’s done, you continue to transfer 1/4 of all bills every week after that.
Why I Love This Method
The reason I love this method of paying bills so much is because I know that we will always have the money to pay our bills this way, and since my husband’s paycheck is the same every week, we will always have the same amount of money left after bills are paid each week. It makes budgeting, paying off debt, and saving SO easy.
Before using this method of paying bills, I never really knew if we’d have the money to pay our bills that week because the amount was different each week. The quarter-payment method ensures that I always know that we WILL have the money plus some left over for other expenses, like food and fuel. That in itself is a huge relief for me.
I’m loving this new bill-paying method, but I’m also open to new, better ways to do things. Do you have any life-changing ways you’ve made budgeting easier for your family? I’d love to read about it in the comments below!
Until next time,
I’m Kari, founder of Mom For More. Do you often lie awake at night dreaming about what it would be like if your family was debt-free? What if you could make that dream come true with a business that allowed you to stay home and be fully present with your babies? Mom for More teaches moms that they can start a home business, become debt-free, and gain more overall peace in motherhood. It equips moms with the tools they need to succeed in their finances, home businesses, and daily lives. You don't have to put your life on hold when you become a mother. It's okay to dream. It's okay to believe that you were made for more. I’d love for you to subscribe and follow along with me!