50 ways to leave your debt behind: freedom account

by babhoyersh on April 29, 2011

Laine uses her Freedom Account to save for her yearly bills. These are probably home owner’s insurance, auto insurance, and taxes. After dividing the amount of the bill by 52 weeks, Laine sets aside a portion each week towards the bill in a cash envelope.

We use the same approach for our yearly and quarterly bills. This covers auto insurance and life insurance, plus our contribution to a capital campaign for our parish.

For each bill, I divide them by 52 and set aside the money weekly in a savings account. Because I’m a bit of a nerd, I keep a running total which I update weekly. I like to see the amounts build over time and know that I’ll have the money when it’s time to pay the bill.

How do you handle bills that happen quarterly or yearly? Do you have a Freedom Account?

Previous Posts in the Series:

Give to the Poor
Pay Back All Debts
Save, Save, Save
Make a Budget

This post is part of Frugal Friday at Life as Mom and Thrifty Thursday at Coupon Teacher.

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Denise April 29, 2011 at 9:04 am

We’ve been using Dave Ramsey’s The Total Money Makeover book. We hope to be debt free by the end of summer!
Denise recently posted..Allergy Free Fun Fridays!

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