Monthly Budgeting Using a Bi Weekly Schedule of Payments – Half A Payment

Monthly Budgeting Using a Bi Weekly Schedule of Payments

What is a Bi Weekly Schedule?

Creating a budget based on a bi weekly schedule is one of those activities that everyone knows is vital to saving money and staying debt-free, but is also easier said than done. If you’ve ever made yourself a mental note to sit down and make a budget, than you probably know better than anyone how easy it is to push that task aside. Actually, you can probably always find something more exciting to do than budgeting your monthly expenses according to your income. However, when you realize just how MUCH money you will save over the course of the year by preparing a bi weekly schedule, you will have the incentive you need to get going.

What are Bi Weekly Payments?

Bi weekly payments are made every two weeks, rather than once a month. One of the first advantages to this type of bi weekly schedule means that you can coordinate the payments to suit your monthly income. For instance, most lenders do not offer bi weekly mortgage payment plans, but if you use a service such as Half A Payment™, you can send two smaller payments bi weekly and the service will send in your monthly payment on the day it is due. By making payments according to bi weekly mortgage payment plans, you don’t have to come up with one huge lump sum on the date your payment is due. Now take out a calendar and you count up the number of bi weekly payments you will make in one year on bi weekly mortgage payment plans and you can see that it will total 26 payments, which means that at the end of the year you will have made one extra monthly payment.

Bi Weekly Payments

What are Bi Weekly Payments on Your Credit Card?

Do you carry a balance forward each month onto your next bill or do you pay off the total balance each month? If you are one of the few who do not have a credit card balance, then you can move on to creating your budget, but if you owe money on a credit card then we can help. On the balance due to your credit card company, you are probably paying interest on a daily basis. It goes to show that the sooner you get the balance down, the less interest you are paying. On a bi weekly schedule you will get the balance down sooner while making extra payments on an annual basis that will save you a bundle!

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October 16, 2013
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