Coordinating Bills and Savings

Saving money in a week or a pay period when you also have bills due puts you between a rock and a hard place. Typically, you will pay the bills and not contribute any money to your savings.

After helping people budget, reduce their expenses and save money for 32 years; I learned that most people have their ‘big’ bills due between the 1st and 15th of the month. The first week of the month is especially brutal because that is usually when their mortgage or rent is due. For many people, this is also when their car payment is due.

What if you coordinated your bills and savings so that all bills get paid and the money you set aside for savings occurs progressively through the month so you don’t have to delay paying your bills or contributing to your savings?

The $5 / $10 / $15 / $20 Savings Plan

The whole idea is that you contribute less to your savings in the first part of the month when the bulk of your big bills are due, and you contribute more later in the month when you don’t have the obligation and pressure of your big bills. Here’s how contributions to your savings works:

  • Week 1 of the month – You contribute $5 daily to your savings or $35 for the week.
  • Week 2 of the month – You contribute $10 daily to your savings or $70 for the week.
  • Week 3 of the month – You contribute $15 daily to your savings or $105 for the week.
  • Week 4 of the month – You contribute $20 daily to your savings or $140 for the week.

Since there are 7 days in a week and most months have 30 or 31 days, there will be 2 or 3 days at the end of each month that you don’t need to make any contributions to your daily savings.

So, at the end of each month you will have saved $350. At the end of one year you will have saved $4,200!

Of course, you can choose the dollar amounts that suit your budget. You can also choose which weeks you contribute what amount. Example: You can switch Week 1 with Week 3 and so on.

You can also customize your savings plan to account for two paydays a month. All you have to do is to combine any two-week period into one. The monthly contributions to your savings will be the same.


Do you have a savings method that works for you? I’d really like to hear about it. Please use the Comment section at the bottom of this blog post to share your story.


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Published by W. M. Brown

I am a retired U.S. expat living in Ecuador. I was a business owner for 32 years before retiring in 2012.

2 thoughts on “Coordinating Bills and Savings

  1. I believe in “pay yourself first” method or idea. I typically save 15%-25% percent of our income (depending on our situations) and have that directly deposited into our different savings funds even before we see the actual money to spend on other necessities. This works best for us. We created a sustainable budget, and live on the remaining 80% (mostly) of our monthly income. We don’t miss the money much. What you don’t see, you usually don’t miss!

    Liked by 1 person

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