I'd love to tell you I've developed a brilliant system to accommodate these costs, but I haven't, other than leaving
a cushion in my checking account.
Solution: First, make sure you have a cash
cushion in your checking account.
That way I build up (slowly)
a cushion in my checking account.
Now, $ 750 by itself isn't enough to pay our highest bill, so we'll need some starting
cushion in our checking account to cover everything until we have a few billing cycles going.
Since we pay our bills using last month's income, we have a lot of
cushion in our checking account; however, only about $ 200 or $ 300 is a cushion.
In fact, I even wrote about creating a $ 500
cushion in your checking account with the thought of an emergency fund (EF) in mind.
Not exact matches
Then I keep enough money
in my
checking account to, (a) Cover any bills until the next paycheck and allow for the particularly large bills; and (b) provide some
cushion in case I make a mistake — forget to record a
check or make an arithmetic error or whatever; and (c) provide some
cushion for short - term unexpected expenses.
Over the next few pay periods, I will slowly move all of my income and expenses into Schwab, leaving an emergency
cushion of about one month's rent, the highest bill I have,
in my 360
Checking account.
In your regular
checking account make the direct deposit amount enough to cover your bills and a $ 150 dollar
cushion.