A Fresh Way to Budget Your Fixed and Flexible Expenses at the Same Time

If constantly checking your account for due dates is draining your energy for managing finances, check out this idea on budgeting from Sierra Black at the Get Rich Slowly Blog.

Sierra’s formula is pretty simple. She sat down with her husband to determine a monthly dollar amount for their fixed expenses, such as car payments, utility bills, and so forth. That amount is deposited each month to their high interest bank account, where it sits untouched until the automatic payments remove it.¬† This provides a safety net, and allows her to focus less on due dates week in and week out.

The remainder of her income remains in a separate account. She can spend freely from it, knowing that her major bills are already secured. Sometimes the beauty of an idea is in how it changes the way we look at something, and this may be that critical tool to simplify your weekly finances.

Hustletown readers: Check out the entire¬† post, and let us know your thoughts. If you already use something similar to Sierra’s plan, feel free to share!

2 Responses to A Fresh Way to Budget Your Fixed and Flexible Expenses at the Same Time

  1. Katrina

    May 7, 2010 at 9:33 am

    WOW this was great. I use EXACTLY the same formula in my household. I researched and found a local credit union that has a high interest checking account that I funnel my personal cash to. My fiance and I use another personal checking account for bill payment. Now we are researching Roth IRAs to open up. To go along with the 403B plan and SIMPLE IRA plan we have respectively.

    As a small business owner, I even take it a step further and opened a SIMPLE IRA for myself and my businesses. I’m even starting a small business for my children. My focus at YourSimple Bookkeeper is two fold, yes personal finance, but also SMALL BUSINESS finance. I’m counseling a small business owner now on how to save her $$ in her very profitable business.

    This is a great article.

  2. Iceman Baldy

    May 9, 2010 at 10:22 pm

    We appreciate the comment and I’m glad you liked the article. All the best and continued success with your business.

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