Juggling Funds So Our Mortgage Check Won’t Bounce
October 30, 2007
Ever since my wife left her full-time job to stay at home with our son our bank account has looked a lot more bare towards the end of the month. Losing a salary has required us to pay better attention to our nickels and dimes so we can ensure all expenses are covered.
Bye-Bye Buffer
My paycheck is split between our high interest savings account at ING and our regular checking account with our bank. It used to be we always had a nice cushion in the checking account so there was always a buffer when the bills came in at the end of the month. Now we’re having to watch that balance much more closely to make sure the funds are available when the checks are cashed.
New Income Source
One thing that has helped cover some of our expenses is a new job my wife started a few months ago that lets her set her own schedule and spend the majority of the week with our son. Due to some administrative issues direct deposit hasn’t been setup yet so she’s still receiving a paper check each month.
Bounced Mortgage Payment
As of this morning her most recent check has not yet been deposited in our bank account and our mortgage payment goes out tomorrow. Needless to say I’m a little worried our mortgage check could bounce for the first time but she assured me she’s got it covered.
Financial Organization Needed
As I mentioned early, part of my check goes into an ING account so we have the money there to cover the mortgage, the only problem is it takes 2–3 business days to transfer money between the accounts. Basically, it boils down to the fact I need to be more organized in tracking our cash flow. I used to have an expenses calendar that mapped out what part of the month each bill was due and approximately how much it would be. I need to dig that calendar out and be more attentive to it so we don’t end up in this uncomfortable situation again.
All posts by Ben Edwards
Oh boy do I know how that feels. I’ve also paid the mortgage online out of the wrong bank account (we an older account that we pay my (far smaller) paycheck into). Nothing like hauling bootie from one bank to another on your lunch hour so you can move the money before the mortgage company tries to take the money out and then assesses a fee once it realizes the money isn’t there. Then of course the bank will want ti assess its own fee for the inconvenience of not having the money to give the mortgage company. And so it goes…
You can always get a ING checking account and use it to pay the mortgage. You get instant transfer from savings to checking, also some interest…
Also you can ask the mortgage company to move the payment date few days after your paycheck day to be sure…
Have you considered setting up an automatic deduction from a bank account for your mortgage? Even though our mortgage payment is technically due on the 1st of each month, our lender let me select the 10th as the payment date.