How to Set Up Automatic Payments for Your Bills
It can be painful setting up automatic payments for your bills, but the benefit is worth it. In fact, you can even save money if you set them up with a 0% APR credit card. Your credit card will get paid off before the high-interest payments start adding up.
Once you have a zero-interest credit card, or if you pay off your balance every month, automatic payments are a helpful strategy. It is worth remembering that your biller may charge you a small fee for automatically paying your bill so check your terms and conditions.
Many bills lumpy, but you only get the greatest benefits if you set up your payments on the day you get your paychecks.
You want to make the payment right when your paycheck hits your bank account. That way, you will prevent the money from taking a trip through the zero money transfer system.
You’ll get a bundle of cash right in your bank account just as soon as your paycheck hits, and you’ll be able to focus on putting that money to better use.
As soon as your paycheck hits your bank account, transfer the exact amount due for each biller into its account. Do not wait to see how much money you have left; you don’t need to freak yourself out guessing.
Using Your Credit Card for Auto-Pay
There are a lot of pros to switching your payment to automatic. The biggest pro, of course, is convenience. Once you switch your payment to automatic, you’ll never have to worry about forgetting to make a payment and incurring a late fee. You don’t even have to worry about getting the bill as it’s automatically sent electronically! When you set up the auto pay, you get to choose a date to pay your bill each month. Other great features include:
- Your credit card company can only charge you for the exact amount you owe based on your last statement
- You can set the automatic payment to help you pay your credit card bill in full
- You can set the amount to almost any dollar amount
You can set the start date for automatic payments to any date in the future.
Treat Investing Like a Bill
You can pay your bills online, so why can’t you pay your investments? There are a few reasons retirement accounts and investment accounts are so different.
Unlike an online checking account from your bank, you can’t access your retirement accounts easily. And when you make a deposit, you don’t write a check or make a transfer. It’s not as simple as writing a check; you have to get your hands on one of two papers and mail it off. You can’t deposit your money without one of these, and when they’re finally received, it can take a week or two to credit the transaction.
The good news is, there’s a solution that helps you treat investment accounts like an online checking account: setup automatic bill payments.
No more wasting days and days trying to get your hands on a paper you need. No more wasted days and days writing a check and waiting for it to go through. If your retirement account is with the right broker, you can save yourself a mountain of time, avoid headaches, and help ensure your money is protected.
My take: Some people would benefit from the aggregate effect of auto payment, but others are happy to pay for what they need, when they need it and have always been doing so and are doing fine.
It is useful that one is not forced to buy things one does not need in order to take advantage of the discounts, but then there is the problem of having to spend money on things one does not need in order to take advantage of the discounts.
Some people like to budget and need to know what is available, but for others, it is more important to have the money available than knowing it is spent.