Fun With Utilities

Alright, so we all have utility bills. Whether its: phone, power, gas, city, garbage, etc..., they're there. I'll tell you what I did to help the ebb-and-flow and regulate the payments. Now it does take some work at first, but this system will work for anyone who wants to try.

When I began this system in the Spring of 2008, I gathered bills for all the utilities for the past twelve months. I must admit, I was missing a couple statements, so I either looked them up on line, looked at bank statements, or guesstimated. Now, here comes the fun part.

1. Add ALL the bill amounts together.
2. Divide this total by 12.

This will give you your monthly average spent on ALL utilities.

For example: All our utilities for 2007 equaled $3360.00. So I divided this amount by 12 and the average monthly payment came out to be $280.00.

3360/12=280

What does this mean? This means that each month we put $280.00 into an account just for utilities. If you decide to do this, you will save your average. **Do not and I repeat do not spend it on anything else or you'll mess up the system.** In the Summer and Winter this amount will not be enough to cover the utilities; but, that's why we like Spring and Fall. They help even everything out because it will be too much.

If you want to give this a try, and you begin during the high months, you will have to supplement with extra, but it's worth a shot.

Every six months, recheck your average. This will help you know if what you're putting away is enough. If things have changed, you can adjust.

Happy Budgeting...