My Bill Immunity Personal Finance Strategy

My bill immunity strategy is something has helped me a lot in developing my own personal finance targets.

This strategy is simple but is very very effective in developing your own personal finance strategy. The bill immunity strategy is simple but essential in my point of view for anyone who wants to have a better financial position. It gives you a solid plan to improve your finances every day and delivers results even in the short term. Unlike any other strategy I’ve used, this is a basic strategy one can use to see immediate results in your Financial Plan.

This strategy works as long as you don’t have debt, it will create you an income stream unlike any other. If you have debt, you should first create a plan to get out of debt. Only then you should consider anything else.

For Whom is this Strategy Best Suited For?

For this strategy to work there should be no debt because it won’t make sense if you do.

This is considered a risk-averse option when you are only starting off. So it’s ideal for people under 30 to use. This will enable them to build a low but consistent asset that brings in passive income without much risk.

Even if you are a risk-taker this strategy or income stream will later allow you to take risks others can’t. If you are in no position to take any risks this is ideal for you. So in both cases, this is good.

If you already have an income stream that generates more than enough income to cover all your costs of existence, then you don’t have to do this.

The first thing to do

Here’s the first thing to do it’s not budgeting nor saving, it’s something better, it’s a search. What are you searching for? It’s a type of investment. You are looking for something very specific to do this. It’s not stocks or real estate or mineral or metals, the thing you are searching for should have the following characteristics about it.

  • It should be giving you monthly returns consistently.
  • It should last your lifetime.
  • It should be able to compound your returns.
  • It should be easy to set up and run
  • It should be reliable and pay like clockwork.
  • You should be able to start it with even a small sum of money.

What can you think of that would give you all the above? Term Deposits. Ah Ha!!!

These are deposits you make in the bank for an annual return depending on a changing or fixed interest rate. I know that some of you are going to say that they give so little, I’m not talking about those 0.02% deposits. I’m talking about 1% or more. In some countries, this can be as much as 5%.

Think about it more, these deposits can come in many forms effectively. Term Deposits are only one type, money market funds that generate anything over 1% a year is also workable, Crypto staking is another, for example USDT gives a rate of 14% at the time of writing, but whether it will give the same rate for your lifetime is a question. Index funds are another. Nothing beats a solid term deposit a solid bank or credit union gives you, so you work around the interest rate. You need to concentrate on what you can control at first then take risks afterward.

Lets Start

Now that you have started your process, take your first bill. Let’s Take an average electricity bill in the US would be around $100.

For ease of calculation, let’s assume your Bill is $100 monthly and your term deposit interest rate is 1.2%. Therefore, for you to get $100 monthly for the electricity bill you need to have a deposit of $100,000. So basically you pay 1000 months electricity bill in one go right. That is 83.33 Years worth of electricity.

Now, most of you will think this is a no-go or useless way to get make money. That’s where I come in.

I took an excel sheet and did some math. You won’t believe what it says.

So I took the compound sheet and put in the following figures, monthly addition of $100 at an annual interest rate of 1.2% will take 215 months for the deposit to give you $1200 for a year. Which is the $100 monthly target we need to cover the electricity bill. 215 months is almost 18 years.

With the same sheet, I calculated the same thing for a monthly addition of $150, $200 and $250. The number of months it takes are 184, 163 and 147 months respectively. That is 15.3, 13.5 and 12.25 years.

With the same sheet, I calculated how much money in a monthly addition I need to generate $100 a month @1.2% in 5 years. I will need an addition of $1471.21 a month. Because the only figure you control in the compound calculation is your monthly addition. If I dig a little bit deeper, that is $49.04 a day. ($1471.21/30 days). Now all I need to do is concentrate on earning an extra $50 a day to achieve electricity bill immunity in 5 years your electricity bill will be paid with your bank’s money, not yours. Think about it more, how much money is in your bank as a nest egg too. Now imagine your credit score with the bank? now think of a buying and selling business with an easy bank loan that earns $50 a sale in profit a day. Now think of your competitor who needs to borrow at a larger rate for the loan. plus your reduced overhead costs. you pay less for to loan and you don’t pay for your electricity.

Now you take another bill and get immunity and onwards we go.

You never pay your electricty bill ever again from your own pocket!!

Your next bill will be now easier because you get an extra $100 a month in your income like clockwork. Plus the compound effect it will be much quicker, you will see that it now takes less than $1,471.27 a month and takes 3 years for your next free $100 and so on.

If you don’t think you can make an extra $50 every day for 5 years, all you do is downgrade your expenses and increase your starting deposit by realizing an asset you don’t need to survive, don’t worry you will get it back later. It can be a car that you can do without, a smaller house that you can move into that costs less to maintain.

Essentially what you are doing is matching a recurrent cost with a recurrent income and building a wealth foundation you develop over your lifetime without wasting any of the time.

Most of all you are positioning yourself for much better avenues in finances.

What does this method allow in 10 years

What do you think happens when your bank pays for all your bills atm for as long as you live? Most of all think about your mental state of not worrying about your bills forever! What would you do in that time? I would concentrate on things that others can’t afford to do.

You are now in a position to take risks that others can’t afford. Buy a painting and wait for 5 years and sell it for 100% gain. Take stock at a higher volume and get the prices down that your competitor can. Build a trust fund for your kids without any issues. Invest in a risky crypto ICO, even if it fails you’ll be fine. If it comes through and gets you 1000% returns.

Keep on building your deposit and move into a larger house, drive a better car all paid for by the bank, not you.

You will see how easy is it to now manage your finances. that’s why I said, in the beginning, it’s a must, and it’s, unlike anything you build. Isn’t it worth the trouble? All you do is find a deposit that has all the conditions, don’t care for things you can’t control, only care for things you can.

You can only control your initial deposit and how much you can put in it every month. The main thing being you do it at the start, and let the compound effect take place, it will outpace your income at a certain point in time.

I hope this has turned at least a few who have read this article into building an income stream that can really change your life in the future.

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Rasika Jayasuriya
Forensic Accountant by Night and Internet Marketer by Day. What started as a hobby back in 2007 has turned to a passion. Small Cash Online is my brainchild, to make people realize how easy it is to make money online using various methods.
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