TIP 3: Deposit In, Take Money Out

deposits in and payments out

Instead of using your checking account to manage your money,

let's use your BLOC as your primary money account.

Understand these concepts:

  • the BLOC is not a savings account
  • the BLOC functions as a tool to drive the mortgage pay-down plan
  • your BLOC cannot drop below a zero balance
  • payments made into the BLOC will force an adjustment to the principal balance
BLOC Account
Starting Credit Line Balance: $60,000
Date From To Advance from BLOC Payment to BLOC Ending Balance
July BLOC Payoff Credit Card Debt $3500   $3500
July Pay Deposit Paycheck   $2500 $1000
July BLOC Pay Mortgage $1250   $2250
July BLOC Living Expense $1000   $3250
July Pay Deposit Paycheck   $2500 $750
July BLOC Pay Auto Loan $500   $1250
July BLOC Living Expense $500   $1750
July BLOC Living Expense $750   $2500
Total   $7500 $5,000 $2500


What Does This Show

Line of Credit Available: $60,000
Pay Credit Card Debt - $3,500
Pay Living Expenses - $4,000
Balance Owned - $7,500
Deposit Payment + $5,000
Ending Balance Owned - $2,500
  • Your Starting Balance was $3,500
  • Your ending balance was $2,500
  • you never made a schedule payment to the BLOC:
    your income represented your monthly payment
  • you borrowed $7,500 from the BLOC
  • you will only pay interest on the average daily balance of $2,500
  • you paid no interest on the $4,000 living expenses
  • your BLOC become an interest cancellation account


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