So, essentially what this household budgeting method does is; instead of dividing the year's bills by 52 to get an accurate weekly amount, it divides them by 48 instead, which gives four weeks less thus adding to the weekly figure slightly to create a totally achievable weekly scenario where you sneak ahead bit by bit every week in your bills
Here's how it works:
- Take your budget and work out what each and every bill costs you for a full year - write that down. (E.g. If water rates cost you $200 per quarter, then that would be $800 per year)
- Take each bill's yearly cost and divide it by 48 (yes 48). Write that down next to each bill - this is the weekly amount you need to pay/put away against each bill.
- After 11 months of paying these weekly amounts uncompromisingly against each bill, you will have either paid a month in advance on each bill or have 1 month's worth of money set aside for each bill
- No more late fees - ever.
- The small amount weekly is not a burden - hardly noticeable
- You get your 12th month free of bills (either paid in advance or the money sitting there ready to pay them).
- If you start in January - you will have a bills-free Christmas/Hanukkah/December
- If you start in February - you will have a bills-free New Years/January
- If you start 11 months before a major holiday …. then no bills during your holiday/vacation period!
- You could even decide just to continue the regime into the 12th month and pay the bill money entirely off the mortgage (for instance).