Steps 1 through 5

step2: use to manage money

Use the BLOC to Manage Your Money

If you have any debt (or if you are financing home improvement), you should never let your money sit idle in a bank checking account.

Money sitting in your checking account is not working for you; it is only making money for the bank.

For this demonstration:

let's say that your monthly net income is $5,000 (paid in two increments bi-monthly) and your monthly living expenses are $4,000.

(we will demonstrate how this program can be used for home improvement)

Your bank checking account would look like this:

Date	From	To	Withdrawal	Deposit	Balance
July	Pay	Direct Deposit		$2500	$2500
July	Checking	Mortgage Pay	$1250		$1250
July	Checking	Living	$1000		$250
July	Pay	Direct Deposit		$2500	$2750
July	Checking	Auto Loan	$500		$2250
July	Checking	Living	$500		$1750
July	Checking	Living	$750		$1000
Ending Month			$4,000	$5,000	$1,000

 

 

Why Let the Bank Use Your Money

What the diagram illustrates is that the bank had access to your positive account balance throughout the month paying you zero or little interest for that use.

Banks then turn around and use that money to lend to consumers and businesses at higher rates.

 

How About Letting You Use The Money

The "Banker" credit line program will work just like a bank by using your positive cash balance to finance home improvement and other life-events.

 

step3: use BLOC as a money account

Start Using BLOC as a Money Account

All income earned such as pay, cash awards, bonuses, and cash gifts should be deposited (or paid) into your BLOC.

Note:
you do not need to close your existing checking account. It may continue to function as your "bill paying" account.

However, the amount in your checking account should be minimal -- just enough to cover checks being written and to avoid accidental overdrafts.

Check with your bank servicing your BLOC whether your employer can automatically deposit income payments into your BLOC.

If no, have your income deposited into your checking account. You will then use your online banking to transfer checking deposits to your home equity line account.

 

Pay All Expenses

You will pay all of your living expense payments (via online bill pay or automatic drafts) from your BLOC. This includes:

• your regular monthly mortgage payment
• your utilities bills
• your insurance
• your living expenses
• credit card payments
• any personal loans such as auto, student, and peronal loans
• all other personal expenses

Or if you prefer, scheduled online bill paying through your bank checking account. Then transfer the funds needed to cover these expenses from your BLOC to your checking account.

step4: maximize the benefts

Use Methods to Maximize Benefits

To receive the maximum benefits of your BLOC, use a credit card to pay for all living expenses:

benefits:
• get a 25-day grace period of no interest
• enjoy ease of use
• earn benefits and rebate awards
• insure protection against lost and stolen cards

use your card to:
• buy groceries,
• gas and other transportation services
• utility services
• insurance
• supplies
• entertainment
• all other living and needed expenses

 

Pay Down Credit Cards Each Month

When your credit card payment comes due, use your BLOC to payoff your credit card.

That gives you 25 days of FREE money — which means the average daily balance on your BLOC account will remain low for minimum interest charged — this allows you to use the bank's money.

 

Find Your Card:

1: If you can budget and control your spending, use a reward credit card to build award points:

2: if you are unable to control spending because of the ease of credit cards, consider using pre-paid cards to manage spending:

 

step5: bank equity program

Budget Your Spending

You need positive discretionary income for the BLOC program to be successful.

This means your income must be greater than your monthly expenses. The higher your discretionary income, the faster the BLOC payoff.

If you're living from paycheck-to-paycheck, you need to conduct a budget analysis to reduce your monthly expenses.

 

Why Budget

• helps you keep track of your monthly expenditures
• limits your spending to a pre-set amount
• forces you to find alternative, less expensive items
• allows you to set goals such as paying down your mortgage
• prepares you for emergency spending

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