Half Payment Method: Use This Technique To Attain Financial Peace

Living paycheck to paycheck is beyond frustrating. Despite having a good income, many people fail to manage the cost and run out of the money at the end of the month. If you are feeling the same situation and scramble while paying the bills, then you must choose some other way.

You might choose a different budgeting plan to control the spending but do not receive any benefits. We know it is quite challenging because regardless of putting efforts you are not getting reimbursement. This is the reason we come up with a new method name HALF-PAYMENT METHOD’.

This concept can give you multiple benefits and we have discussed it in this blog. Without wasting more time, let’s find out…

What is Half-Payment Method?

It is a simple method where you have to keep aside half of the amount you have to pay for the upcoming bills. Suppose you prefer to pay weekly, then quarter the number of bills (utility or external bills)

In mediocre language, paying bills at once with monthly paycheck does not allow you breathing room in your cash flow. It would be better for you to divide them so that you can prepare in advance to pay the daily cost.

Let’s understand it by comparing the two methods…

  • Pay the big ones first, then a small one: In this, people pay their large cost first and then the small one

For instance,

You earn £2000

  • Rent: £700
  • Children’s expenses: £200
  • Car payment: £300
  • Debt: £150
  • Utilities: £650

Those who follow this method will pay the rent, utility bills, and car payment first. Once they cleared all these costs, then they will children’s expense and debt. It is not an effective choice because you are not able to save money and will feel more pressurise while paying off the bills.

  • In Half Payment Method

For instance,

Here divide all the expenses into two:

Middle of the month

  • Rent: £350
  • Children’s expenses: £100
  • Car payment: £150
  • Debt: £75
  • Utilities: £325

Ending of the month 

  • Rent: £350
  • Children’s expenses: £100
  • Car payment: £150
  • Debt: £75
  • Utilities: £325

In this way, you can easily clear all your bills and will prepare the bill’s amount in advance. And the amount will be less overwhelming for you.

Steps you should follow to make half payment method successful

The below-mentioned steps can help you follow the effective half payment method.

Step #1: Divide the amount 

If you are receiving £200, then divide it into £100. It is depending on you that you are following this bi-weekly or bi-monthly.

Step #2: Create two accounts 

Whenever you receive the salary or paycheck, send them into two accounts. One of them could only be used for paying bills. This will help you to stay away from over or accidentally spending. If your bank does not allow you to have multiple accounts, then you can start this method at home.

Step #3: Transfer money back to the regular account

When the date arrives, then transfer the saved money back into a regular account. You may find this task difficult but with time it will become your second job. So, don’t worries just follow the above steps and you will amaze to see how easily you clear off the bills.

The disadvantages of Half Payment Method

Every coin has two sides, one is positive and the second one is negative. We have discussed some positive side of this concept so far now; it’s time to watch the disadvantages.

  • Difficult to track half of each payment: Finding half of every bill may be a daunting task. And a small mistake can lead you to many money problems.
  • You have to control yourself to not touch the second half amount: You may able to save the second half of your paycheck but many such situations occur where you need instant money. In that scenario, you may feel uncontrollable to use the second half.
  • Find difficulties to achieve the long term goals: It may happen that you may not able to save money for long term goals. Though, you have a solution in the form of some borrowing methods like loans. Here your aim is to achieve the long term goals, and then long term loans from online lenders in the UK may be the ideal choice for you.

These are negative side but overall it is an efficient way to clear all the bills fast. It depends on you that how dedicatedly you are following. And the most important part is “STICK TO YOUR WORDS”. If you exhaust the saved money for short time pleasure, then you may ruin your finance.

Comments are closed