SLIDE 3: deposit money in and take out

Using Your BLOC Like a Checking Account

Instead of using your checking or savings account to manage and hold money, use your BLOC as your primary money account.

Understand these concepts:

the BLOC is not a savings account

the BLOC functions as a tool to manage financing

your BLOC should not drop below a zero balance

use your BLOC to payoff debt and to finance needs

payments made into the BLOC will force an adjustment to the principal balance

Your BLOC account would look like this if you had $3,500 in credit card debt to pay off:

BLOC Account Starting Credit Line Balance: $60,00
Date	From	To	Advance from BLOC	Payment to BLOC	Balance Owned
July	BLOC	Payoff Credit Card Debt	$3500		$3500
July	Pay	Deposit Paycheck into BLOC		$2500	$1000
July	BLOC	Pay Out Living Expense	$1250		$2250
July	BLOC	Pay Out Living Expense	$1000		$3250

July	Pay	Deposit Paycheck		$2500	$750
July	BLOC	Living Expense	$500		$1250
July	BLOC	Living Expense	$500		$1750
July	BLOC	Living Expense	$750		$2500
Total Ending Month BLOC			$7500	$5,000	$2500

What Does This Show

	Opening Credit Line Balance	$0
	Paid Off Credit Card Debt	- $3,500
	Pay Living Expenses	- $4,000
	Balance Owned	- $7,500
	Deposit Income Payments	+ $5,000
	Ending Balance Owned	- $2,500

your starting balance was $3,500
your ending balance was $2,500
you paid off all credit card debt
you never made a schedule payment to the BLOC:
your income represented your monthly payment
you borrowed $7,500 from the BLOC
you will only pay interest on the average daily balance
(in this example, your avg. daily balance for the month approximated around $2000. Interest charges would be about $13-15 per month at 8%).