TIP 2: BLOC to Function Like Your Money Account
the bloc will become your money in-, money-out account
The BLOC will function as your day-to-day money account:
If you have debt, you should never let your money stagnate into a regular checking account. Money sitting in your checking account is not working for you; it is only making the bank money.
let's say your monthly net income is $5,000 and your monthly living expenses is $4,000.
Let also assume you get paid 2 times per month and that living expenses average out the same per week with the exception of your mortgage payment that is paid monthly.
Your bank checking account would look like this:
Date From To Withdrawal Deposit Balance 07/01 Employ Direct Deposit $2500 $2500 07/01 Checking Mortgage Pay $1250 $1250 07/07 Checking Living $1000 $250 07/15 Employ Direct Deposit $2500 $2750 07/15 Checking Auto Loan $500 $2250 07/20 Checking Living $500 $1750 07/31 Checking Living $750 $1000 Total $4,000 $5,000 $1,000
Why let the bank use your money
What the diagram illustrated is that the bank had access to your positive balance throughout the month paying you zero or little interest for that use.
Banks then turn around and use that money to lend to consumers and businesses at higher rates.
The mortgage payoff plan works like a bank:
The mortgage payoff plan will work like a bank by using your positive cash balance to pay-down your mortgage. Let's illustrate how.