Michelle that was a great touch on your American Express. Matching your insurance and adding the additional. Some people would try to force to match a bill. What helped me decrease my discretionary spending is started grocery shopping more, even if it's microwave food. Instead of buying a burger combo that can cost around 15 bucks, I can buy a loaf of bread, turkey, ham and loaded up to my likings. I had to be more conscious. When I saw (can't remember the channel) that eating out cost 300% more than eating at home, I changed. Got rid of all delivery apps, I now go get my own groceries. I didn't realize that I was spending about 400 a month on delivery services. The other day I order Little Ceasars and didn't feel good, 50 dollars for the family to eat one meal. We could have eaten so much more and better had we just gone to the grocery store and cooked it. Lastly, I think your biggest achilles heel is your discretionary spending. I think once you come up with a system to manage it better, you will find yourself with more cash flow to pay things down. Have a great day. Remember, cash flow is what pays down your bills.
@@Moving2Win thank you so much for sharing your tips. I hadn't really equated more cash flow with more money to pay down my debt. You're absolutely right. Now that I think I finally have a handle on the bill matching, I'm going to shift my focus to decreasing my discretionary spending.
You made my day!! I honestly almost didn't post because it was so late in the month but once I read your comment, I decided to post the August video even though it's super late.
There was a coworker i got a little too close with and eventually some conflict arose between us. Thankfully she didn't escalate things but that kind of scare will make me extra careful from now on.
The credit card that's almost max out should now become your main account. Instead of focusing on paying off Old Navy, you should make it a sleeper card. Make the card that's almost maxed out your main debt tool and park your cash flow there. Sure the goal to pay off Old Navy in August won't be met, but now you begin to bring down the CC that is near the max limit. Another strategy might be splitting cash flow in half. Sending half to Old Navy and the other half to the nearly maxed out CC.
@@moneywithmocha7787 Sleeper Cards are the credit cards that your bill matching. The goal of sleeper cards isn't to pay them down, it's to meet minimum payment by bill matching. This does 2 things 1) Increases cash flow because you're meeting the minimum payment on the credit card with bills. 2) This also allows to save a little interest but not much. The main function of bill matching/sleeper cards is to stop the bleeding for the moment. The stoppage of bleeding money, interest and having to make monthly payment allows you to focus on your main CC. Yes, interest accrues and balance does go up on your bill matching/sleeper cards, but that's ok. As long as you're not almost max out. Once a sleeper card begins to reach credit utilization near 80% (my opinion) then you want to throw extra money (cash flow) at it or switch it and make it your main CC.
Michelle the same thing happened with the sound. It's very low. I was looking forward to your video and enjoyed it. Fixing your volume would be amazing.
I think you're on the right path and also being honest about yourself helps. A few tricks that I can recommend is to get a decent budgeting software to help you visualized cash flow in and out and to nail down a good budget. Automation to automatically deposit money in different area is another start. An example I use is to have spending budget into the main account then remainder into the savings. The goal is not to touch the 2nd account and have enough in the spending account to get by every month. After you have 2-3 months of income saved than hammer away on those credit cards and lock them up, cancel if you have to. I also ditch the high yield savings for a cash management account (money market) that I receive an extra 5% APY (current rate). Free money for any unspent cash. I'm not an expert or anything but these are the little steps that I've taken.
I hear you. I have always wanted to be an actress, but to look at myself on camera is awkward & I think about quitting all the time & there is so much that goes into making these videos.
Like you - I found cash stuffing to be cumbersome, but I also would consistently go over budget when I used by debit/credit card. So, I started to use cash for categories I tend to go over on: groceries (food and household supplies), personal care (toiletries, beauty care, wellness), and fun (eating out, entertainment, etc.). This really helped me. It kept things simple and I made more intentional purchases. Knowing I only have certain amount of $ on hand prevented me from making impulse purchases. I would also have cash left over that I would put towards a $5k cash challenge I'm doing.
I agree about spending all over the place. Eating out is killing me!!! Just from may 1st we’ve spent over $300 going out to eat. It’s only the 6th!!!😱😱
Don't beat yourself up about the spending. I don't cook so I know most of my spending is on food. I think it helps to spend on one card because it's easier to track on a daily and weekly basis.
I also notice that eating from restaurants was my biggest problem. So the way I fought that was compare the what I was paying from eating out and then look at how much groceries I could get if I stopped eating out. It's made a huge difference. Have a great day.
Just wanted to clarify one thing. With VB we treat our LOC/CC as a checking account. We put money in and pay expenses from that account. The difference between paying from a LOC/CC than a checking account is that paying from checking account saves you no interest. As opposed to putting the money in LOC/CC which pushes down the average daily balance, lowering the amount of interest paid for the month. Have a great day.
@moneywithmocha7787 It was just a clarification on my part. What you are doing by bill matching in your situation is increasing cash flow because your meeting the minimum payment then reusing those dollars to meet expense. Have a great day.
I love seeing your dog- he just wants to help out! ❤ new to both your channel and velocity baking. Learning a lot. Love your videos - starting the journey right along with you!
I'm disappointed that they keep lowering your credit limit, but happy that you found your own system of paying things from one debit account. Have a great day.
Make small chunk payments instead of large payments at once so they don’t lower your credit limit. So a payment of $100 each day until you get up to your $500.
New subscriber- ❤ your videos! Trying to watch all the velocity banking ones. Just discovered it a few days ago and I am hoping to start it right away!
Stumbled on Mrs Vann 3 days ago and am getting ready to very started. New subscriber here. Going to binge watch some of your videos now. Glad I found you!!
I'm the author of EIGHT DAYS IN AN INNER CITY SCHOOL the out of control OCCUPATIONAL LICENSING for k-12 teachers is chasing off more educators than anything else
Bill matching or the sleeper method (Created by Molly) is meant to stop the bleeding for someone who has multiple credit cards. Say I have 5 CC with balances. I bill match 4 (sleep) of them with bills so I can meet minimum payment. Which frees up the monthly minimum payment from the matching of bills (cash flow) to park it on the 5th CC which functions as my main LOC/CC that I am attacking with my monthly cash flow and miscellaneous spending (gas, groceries, dining, activities). After you pay off the main CC you move on to the next card. Bill match 3 CC and get started on paying down your new main CC/LOC. Until they're all gone. Hopefully this makes sense, have a great day.
Hi Mocha. I watched some of your videos before. I think you have a good head on your shoulders. People watch videos , whether they agree or disagree, to gain different perspectives. Open discussion and discourse is a positive activity. That said, if you have any questions about my points, we can certainly discuss them openly.
@@moneywithmocha7787well, I would like to see you succeed. Velocity Banking, unfortunately, is not a path to success. Light and love imply truth. Please share truth and good ideas about personal finance. That happens when you educate yourself and can objectively analyze various actions.
11:14 Yes, that's exactly what you're doing. Remember you have to shift your mindset from your LOC/CC being a bill/expense to being a checking account. The easiest way for me to explain it, the minimum monthly payment is not a payment at all. It's the minimum number of dollars required to pass or park in that checking account (LOC/CC), to stay in the banks good graces. So you're putting the T-Mobile and Spectrum, they satisfy the minimum dollars to park/pass. Anything else added (adding the minimum payment) is cash flow gained, because the payment was no longer required.
Thank you for addressing these mistakes head-on. It's refreshing to see someone discussing the challenges teachers face when transitioning careers. Your video provides valuable guidance and encouragement. Keep up the excellent work!
1:25 What the bill matching does, it allows for the use of 1 dollar 2 times (any LOC). So whatever your minimum payment is on your LOC (or multiple lines) is it allows you to meet minimum credit card payment, then meet expense. So if you have an expense of 200 electric bill and 200 CC minimum payment you only have to come up with 200 dollars, but you're parking 400 in the line (increasing your cash flow by 200). Whereas the old mentality of looking at a credit card payment as an expense no longer applies. The CC now becomes a checking account (that charges interest), with a minimum amount required to pass or park on the CC. Old System: CC Payment: 200 expense Electric Bill: 200 expense Total to meet both payments 400. Velocity Banking: 200 income -> 200 CC payment -> 200 electric bill (expense). You used the 200 twice. So what happened to the other 200? It's parked in the CC pushing down the average daily balance (which results in less interest paid). More money in your pocket or better known as 200 cash flow increase. Have a great day.
Did you know if you have a checking account with BOA you can link your credit card to it and be able to do velocity banking much easier. It is like an overdraft protection.
@moneywithmocha7787 I was going to start and bought everything, but I get nervous because I don't want to lead people in the wrong direction. I bought the supplies too. Also I apologize that this message got posted twice, my internet cuts off sometimes and repeats the message multiple times, out of my control. Have a great day.
1) When you use a credit card as your main LOC you don't park your entire paycheck in the credit card. You split your money into 3 categories: Credit Expenses (what you can pay with a credit card) (cell phone, internet, groceries, gas, subscriptions, low fee utilities), Cash Expenses: rent, mortgage, student loans, personal loans, car loans, high fee utilities), Cash Flow: what's left over after everything is paid. 2) Since you're scared to put a big chunk into the card, a different approach you could do is take your cash flow and split it to attack multiple cards. Example: Cash Flow‐600 Credit Cards-3 Split the 600 CF to fit into the 3 cards. Card 1: 300 CF Card 2: 200 CF Card 3: 100 CF The 600 going into the 3 credit cards looks different than putting 600 into 1 card. You're still doing similar damage without the big chunk notice, that might trigger the credit limit decrease. Hope this helps and makes sense, have a great day.
Hello Mocha. I have been using velocity banking for some time now. I'm just curious why not build your credit up? I have an 825 credit score. I started out with a low credit score. I went into my credit union and ask for a secured credit card. It is just like a bank card really but it gets reported to the credit bureau. You can only use what you have on the card which I think changes behavior because I knew I couldn't spend anymore if I ran out of money on my card. It really helped me a lot and my credit score started to rise with time. With a low credit score, you will continue to run into problems. We are a credit society now. With a low credit score, it is going to take you longer to operate the way you want to. The credit card companies will continue to lower your credit limit soon. Banks are beginning to tighten up on loans and credit card companies will have to adjust. Good luck to you.
Thank you for your suggestion. I need to research ways to boast your credit score because I'm really not that familiar with the topic. I'm hoping that decreasing my credit utilization will also help but that's contingent on my limits staying the same.
If you look at what velocity banking is, its a more efficient debt snowball. With debt snowball you attack your smallest debt. As opposed to VB where we attack the LOC with the highest minimum payment because it frees up the most cash flow. Cash flow is what drives you forward, expenses are what moves you backwards. The more you increase your cash flow the faster you move forward, paying less interest, pushing you forward even faster. Have a great day.
I’ve been watching “Teach Me How To Budget” Velocity Banking channel also. I’ll be implementing bill matching starting January 2024. You mentioned making bigger payments on some of your cards. She advises against making large/lump sum payments, which may trigger creditors to slash your limits. Break those payments up into smaller increments.
Thanks so much for the warning. I have three cards with chance and got three letters stating that the limits had been dropped. I’m going to hold on to cash and pay the cards down in smaller increments instead of dropping a lot of cash at a time. All of my payments were on time and they still dropped the limits… ugh!
I had never heard of it either. But then I watched a documentary about credit cards and it stated that companies can use your total credit history when increasing or decreasing your credit limits.
It has to do with mitigating (making something painful, less painful) risk. Put yourself in the banks shoes. If you gave me a 20K limit credit card with 90% (18K balance) utilization you might not lower my limit because I might say, screw them I'm not paying them. So if I'm at 90% utilization and make a payment of 6K (30% of credit limit), they lower my credit limit because at least they got a good chunk of their money back. So if you decide not to pay (or can't pay), at least the damage done was lower (mitigate). Hope this helps, have a blessed day.
