Bill Buster

30 years ago, if you wanted to change TV channels you had to move your bum instead of your thumb.

And if someone suggested you would one day be paying for TV content, you would have laughed at them while hugging your VHS recorder.

Now look at us!

Just about every household has Netflix, Amazon, Foxtel, or some other pay-tv service.

But why?

Because we live in the age of subscriptions.

The subscription model is powerful for two reasons.

Firstly, providers know that if their price points are only $9.90 or $19.90pm, we won’t baulk at them.

Secondly, subscriptions work on a direct debit system. We don’t have to open our wallets and purses.

In other words, if we don’t ‘feel’ it, we’ll happily pay it. That is, until the little suckers start to add up and we have five or six to pay per month!

During the week, I was speaking to a client who was shocked by her winter power bill. It was a few bucks shy of $600 for one quarter.

By comparison, her February power bill was less than $200 because she didn’t need air con.

Lisa had the money to pay it, but gees she felt it. As you would!

So I suggested she treat her gas and power bills like subscriptions.

1. We calculated her annual power bill to be approx. $1,600.
2. This equated to $30 pw.
3. Then wet up a weekly automatic payment of $30 from her bank account to her energy supplier.

As I explained to Lisa, the bill has to be paid at some stage so why not pay a bit every week.

She became so excited about being on top of her bills she set the same thing up for her gas and phone bills.

I’ve been doing this for years and it’s so nice when you get a bill with a credit, instead of owing money.

Better still, you get the discount for paying on time plus it’s one less job to think about. I like!

However, if this idea is not for you, you may wish to set-up a separate bank account for your bills.

Begin by giving your account an empowering nickname like ‘Bill Buster’.

Then add up the annual amount of all your lumpy bills like power, gas, phone, rego, dentist, mechanic, school fees, etc.

Don’t get it perfect in the beginning, just get going!

Now, let’s say that amount comes to $40,000.

Divide $40,000 by 52 = $770

Then transfer $770 every week into your ‘Bill Buster’ account. If you get paid monthly, then do it monthly.

Again, your bills have to be paid at some stage so why not pay a bit every week?

It will be the best subscription you ever sign up for.

Have a great weekend!

Adam