Previous Entry Share Next Entry
Bank holidays sneak up on me....
blaisepascal
As a comment unrelated to the subject: spiders sink in coffee overnight.

Monday is a bank holiday here. That means banks are closed and routine business of banks, like automatically paying bills, doesn't happen.

The automatic paying of bills bit is important, since I have managed my finances by splitting all my monthly bills into 4.3rds and scheduling that amount to be paid automatically due every Monday. That way, I have the same amount coming out of my weekly paycheck, leaving me with the same amount of take-home/unencumbered pay each week, smoothing things out. The actual scheduling of payments has nothing to do with the actual due dates of the bills. I've not run into any place which has complained about being paid weekly instead of monthly.

Although I get paid on Fridays, I tell the bank the bills are due on Monday because it nominally takes the bill-paying service a business day to deliver the payment. By saying that they bills are due on Monday, the bill-paying service ensures that it can deliver the payment on time by taking the money out of my account the previous business day, or Friday. As such, my paycheck gets credited to my account via direct deposit when the bank opens at 9am (when I am at work, or on the way to work) and the money for the bills is withdrawn by 11am (before I head out to lunch). I never have an opportunity to spend the money-for-bills.

However, Monday is a bank holiday, so the bank can't pay the bills on Monday. To ensure that the bills get paid on time, the bank instead attempts to ensure delivery by Friday, the business day before the bank holiday. To do that, the bank tries to take the money out of my account the previous day -- Thursday. And so by Thursday lunch I'm unexpectantly broke -- until Friday lunch.

I can alleviate this by rescheduling the (totally artificial) due dates to be the Tuesday after Monday bank holidays, but bank holidays sneak up on me.

  • 1
What if you had a small savings account that was linked to your checking account that was set to equal the amount due every Monday. With the direct paycheck deposit, maybe it could be set to replenish any amount taken from the savings account before depositing the balance into your checking account in the event that bank holidays caused bill pay to happen before direct deposit. Of course, having a little more of cushion in your checking account would add up to the same thing; I have just found it easier with separate accounts to see right away how the money is being classified.
~fractalshadows

  • 1
?

Log in

No account? Create an account