How to Manage Your Money Without Budgeting

Posted in Money Tips
Posted by J. Douglas Hoyes, CA, CPA, LIT, CIRP, CBV

Don’t Budget: Pay Your Bills as Often as You Get Paid

In our previous post we talked about the secret to making a budget which was “Don’t Budget“. We explore more on how this works.

If you get paid weekly, pay your bills weekly.

Paying your bills every week is easy if you can pay your bills online, but what about bills you can’t pay on line? You probably pay your rent by giving your landlord post-dated cheques each month. Your landlord probably doesn’t want a cheque every week, because it’s a lot more work for them to deposit a cheque each week.

The secret to monthly bills: The PLAN account

For bills that you can’t pay monthly, open a second bank account for your monthly planned payments.

Plan Your Budget Payments

For monthly bills, deposit the money each payday in your PLAN account.

If your rent is $1,000 per month, and you get paid every week, have your bank automatically transfer $250, on payday, from your main bank account to your second or PLAN bank account. You then give your landlord post dated cheques from your PLAN account, dated for whatever day they want to get paid. Your landlord is happy because they’re getting their rent cheque once a month, and you’re happy because you are paying your rent every payday. This PLAN system works for every bill that you don’t pay every payday.

Use your PLAN account for annual bills

The PLAN account works great for annual bills. You renew your car license sticker once a year, so instead of trying to find $120 on your birthday when your sticker renews, put $10 per month, or $2.50 per week, in your PLAN account on payday.

This works great for other annual expenses, like Christmas, birthdays, and your annual vacation.

What about saving for the future?

Your PLAN account works for savings and emergencies. You know you’ll have some car repairs in the future, so start putting $10, or whatever, in your PLAN account each payday for future car repairs.

You want to save for you children’s education? Or retirement? No problem, put what you can afford in your PLAN account each payday. Even better, start an RRSP or RESP and contribute to it every payday. The money will be invested before you see it, so you won’t be tempted to spend it.


But what can you do if there isn’t enough money to pay your bills and save? If your cash flow problem is caused by too much debt, we need to talk. At Hoyes Michalos we can help with budgeting, but we can also explain all of your debt management options to help you deal with debt and get back on track.

Use our Debt Repayment Options Calculator to compare the cost of different debt management programs.

If you need more help reducing your debt, contact us at any of our Hoyes Michalos offices to book a FREE no obligation professional consultation. You have options, so let our experts show you how to budget, get out of debt, and enjoy tomorrow.