How to Easily Pay Your Bills

Some years ago I learned a system that made it remarkably easy to meet the challenge of having enough money to pay my bills and save money. This system takes the guess work, stress, and mystery out of playing the money game.

Typically, what most people do with their money, is cash their check or have their funds deposited into their “savings account” in their bank or credit union. As John Cummuta, financial wealth author discusses in his programs, your “savings account,” is misnamed. It should be call a “spending account,”
because the money that goes into that account is usually spent on a regular basis.

The system I am going to share with you works extremely well if you are an independent contractor, because it helps you easily manage uneven rates of cash flow. If you are a salary or per hour worker, it works even easier for you, because you know exactly how much you are making each week. So, here is how the system works.

The first thing you need to do is go to your bank and have them create “sub-accounts” from your regular “savings account.” You will need as many as seven to nine sub-accounts. In the different sub- accounts you will deposit money for different purposes. For example, in one account you would put money for your future investments, in another account you would deposit money for your emergency fund, in another you would deposit money for your car payment, in another your house payment, another your vacation fund. My point is, you want to create the type of sub-accounts that would pool money, to pay for all the specific financial obligations you have.


Let’s say you are earning approximately $52,000 per year. You get paid one thousand dollars per week, and need to budget your money for different financial obligations. The way your weekly paycheck would be divided up would look like the sample below:

Sub-account $ Amount
01 – Investments - $100 (10%)
02 – Emergency Fund $50 (5%)
03 - Car Payment $75
04 – House or Apartment $250
05- Miscellaneous $100
06- Taxes $250 (for independent contractor who needs to pay taxes separately)
07 - Gifts $25
08- Business expenses $100
09- Vacations $50

Total $1,000

Your figures would vary depending on the amount of money you earn and your financial obligations. A good rule of thumb is to invest at least 10% towards your future retirement and set aside 5% of your paycheck to cover future emergencies. Financial expert, Suze Orman recommends that your future emergency fund should have enough in it so it would allow you to live for three to eight months in the event of your being unemployed or unable to work.

The key to making this system work successfully is in your discipline to regularly depositing the specific amounts necessary to make your investments, pay your bills, and your taxes. When you are able to work this system on a regular basis, you will be well on your way to financial happiness.

If you are interested in a better career in business visit www.businessworkforce.com

Tom Borg is president of Tom Borg Consulting, LLC. He is a business consultant, speaker, coach and author. He helps companies and organization become more profitable by showing them how to attract and retain their clients.