How to Do a PMCS on Your Bills

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Picture this: you’re on a family vacation driving cross country and find yourself stranded in the middle of the desert because your SUV broke down.  Your cell phone shows no signal bars and you have no way for calling for help.  You have this sinking feeling in your gut because you realize that you forgot to have your car serviced before you left.

Now picture this: similar situation but instead of a SUV you’re in a Humvee.   And instead of a family vacation, you’re on a patrol through the streets of Baghdad.  Breaking down is not an option.   To prevent a breakdown from occurring, it is essential that proper maintenance be done on the vehicle prior to leaving and also when you return.   In the Army, we called this PMCS: Preventive Maintenance Checks and Services.  PMCS’s were performed daily- even on days we didn’t run missions.

When it comes to your finances and paying your bills, it’s vital to perform a PMCS.   By doing so, you will prevent any major breakdowns in your budget and keep yourself on track.  The best part is you can do it in 3 easy steps.

Step 1: List your monthly bills

The quickest way to do a PMCS is to write down everything you know you have to pay each month.  Remember, we’re just talking about fixed expenses here.  I’m not as concerned about how much you spend each month on eating out or getting your hair done- at least for this exercise.  (If you eat out every night and get your hair done once a week, we need to have a talk. )

Here are a few common examples of what your fixed expense might look like:

1. Rent or Mortgage
2. Auto Insurance
3. Other Insurance (Health, disability, life, etc)
4. Cell Phone
5. Home Phone (If you have one)
6. Internet
7. Cable/Satellite
8. Trash
9. Utilities (gas, water, electric)
10. School Loans
11. Auto Loans
12. Credit Card Payments

Step 2:  Gather Info on Each Bill

If you’ve already completed the budget sheet on the site, then this step should be very easy for you.  All you do now is the list the amount you pay on the bill each time.   You’ll also want to define if you pay the bill monthly, quarterly, or annually.  If the bill is tied to interest rate (mortgage, car, credit card), you’ll want to jot that down and the pay off balance,too.  What if you don’t know?  It’s now time to find out.  This might require you to make some inquiries.   Don’t worry, your time and trouble will pay off.

Step 3:  PMCS Each Bill

In this third and final step, we evaluate each bill and ask two simple questions:

1. Do we really need this expense?
2. If we do, how can we lower our costs?

As a SOF, it’s imperative to be lean and mean.

If you’re struggling to pay the bills, save for retirement, etc; it’s time to cut the flubber.

Time and time again I see people say these words, “I need [fill in blank]“.   B.S.

I remember talking to someone who could barely pay their light bill each month but you could never tell.  They drove a new car, wore nice clothes, ate out constantly, and had a cell phone package that would make a corporate executive jealous.  Along the way, they had justified that they “needed” all these things.

If you absolutely can’t live without it- what I call “mission critical” then our next objective is to see if we can cut costs.   If you need a cell phone, then analyze the package you have and make sure you’re not overpaying.   You need a car, but do you really need SUV that costs $750 a month?   You get the point.   You’ll be amazed on how much you can reduce your monthly bills you really try.