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.


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