Section 1: Using the BLOC to Manage Your Money

You May be Thinking —

what's the difference between paying down the BLOC with your discretionary income or just sending in an additional amount to pay down the HVAC loan or any other debt?

Let's think about this

1. Is the extra amount in your money accounts discretionary or emergency income:
   
   most financial savvy families will maintain some savings in their money accounts for emergency or other planned event (i.e., vacation expense). The money sits in their checking or money market account earning little or no interest.
   
   When the savings reach a certain level, they may use the extra amount to pay off some debt or other event.
   
   In summary, most savings function as an emergency fund.
   
   
   
2. With the BLOC, it is nothing but discretionary income
   
   all of your excess income reduces the BLOC balance. It is working constantly to pay down your BLOC balance to reduce interest charges.
   
   You don't need to set aside emergency funds with the BLOC — your entire credit line is your emergency slush fund (i.e., your bank).
   
   So all your money is working for you. And whenever you need emergency funds, you simply advance yourself money using your BLOC.
   
   Since your "excess savings " was paying down your BLOC balance, you are simply taking back your excess savings when you advance yourself money.