A Better Way – Managing Your Cash Using a Line of Credit


A Better Way – Managing Your Cash Using a Line of Credit

Sometimes what’s most familiar is neither easier nor better.

Dreading the Bill Payment Process

For many of us, sitting down weekly and paying our bills is a chore we’d be all too happy to postpone. It’s not one of our top ten activities. Our goal is to do what must be done and move on.

Suppose all of your bills were do at approximately the same time of the month? Suppose you could also plan for the following month? Suppose your system was automated so that you have few checks to write?

Keeping your lazy dollars working by responsibly using your line of credit is not only easy but is will also save you time and money – lot’s of it.

Your Automated Consolidated System

In today’s post let’s start by focusing on saving you time. Here’s your system. You’ve got a line of credit, you’ve created your budget and you know the beginning billing date for your line of credit.

  1. Your bank has set up an automatic loan payment to occur for each day income is deposited in your checking account.
  2. You’ve rescheduled your regular payments to the last day of your line of credit’s billing period. You discovered it doesn’t cost you a penny.
  3. You use your credit card to pay monthly expenses. Your credit card’s due date is at or near the end of your line of credit’s billing period.
  4. You’re using your financial institution’s recurring expense feature in their on-line bill payment service.
  5. At one time, you enter the amounts to be paid in your on-line bill payment account.
  6. On the last day of your line of credit’s billing cycle, you check the balance owed on your line of credit. Based on your personalized CashMap, you know if this is the month to make a withdrawal from your line of credit for an additional payment to your loan.
  7. Last, you use this as an opportunity to confirm that your plan to reach your future goals hasn’t changed. If so, you update your plan and create a new CashMap.You’re done! You’ve created a simple process that makes the best use of your time. Month after month, you’ll repeat steps five, six and seven. With all your money in a line of credit, every penny is working for you to either help you get out of debt faster or to help you build your wealth. Your checking account is no more than an account for your dollars to pass through – either going to or from your line of credit.

    The best part is you’ve joined an exclusive group of individuals that has learned the simplicity of using the bank’s money to guarantee your future. You’ve also eliminated the high cost of lazy dollars.

    Thanks for joining me. I’d love to hear from you. Please send your questions, topics or suggestions to dennis@cashmapconsulting.com. You can also follow me on twitter at cash_map.

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It’s not magic. There’s no hidden catch. Use your bank’s money, not your hard-earned savings, to safely save more money and pay down more debt. Our clients have saved hundreds of thousands of dollars with this simple principle. Learn how it works with our FREE ebook Managing Your Lazy Dollars.