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Scheduling Future Bills

February 20th, 2010 at 01:01 pm

Am I just an oddity, or do others "prepay" their regular monthly bills?

Let explaine what I mean by "prepay". I know the date each of my regular bills are due each month (ie: gas electric cable ect) as should we all. I also know approxcimently when the online statements are available. As soon as I can setup a payment online I do. But I set them up for payment the day before they are due, not the same day I get it, then I mark the transaction in my resigtry with the payment date.

I ignore the current date balance in my check book and only use the bottom line as my grocery/gas/entertainment balance. Since I don't use any checks (my wife does, I use the debit card) I don't have to worry about numerical order or things like that.

The advantages I see to my method are:
1. I am never late with a payment
2. The pressure is off me to remember to pay bills (although I do have my set days for scheduling payments, the Saturday following payday, so this is kind of a nonfactor)
3. I gain interest for carrying my checking balance at a higher level for an extended period of time

I know number three is only worth a maybe a dollar or so a month but why give away interest when i can be earning it?

My only exception to this way is my car payment, my target debt at the moment. That I pay 25% of the monthly payment on a weekly basis so as not to accumulate any more interest then I have to. Accually I have been paying double that every week since it is my target.

I kind of do the same type of thing with my credit card, but that is for another time.

So am i just an oddity? Or do others "prepay"?

Side note: I got the title to my other car in the mail last Wednesday (I paid it off the previous Friday, 2 years and 1 month early). The same day someone busted out a tail light and scratched the bumper in a parking lot.
I am starting to wonder if maybe accually owing a car is a jinx for me.

4 Responses to “Scheduling Future Bills”

  1. creditcardfree Says:

    I probably do something similar. We are paid twice per month. I know which bills I pay with each check, which is based on due date. I pay all bills for that payperiod on payday. Only exception is the water bill, which varies and only arrives by paper statement (no ability to see online). Everything leftover after bills is money for daily living and a set amount for paying off debt or other big goal. That extra money gets set aside on payday as well.

    Congrats on paying off your car!

  2. monkeymama Says:

    I am kind of the same way.

    In the old days, I just paid my bills as soon as they arrived. NO worrying about late payments, etc.

    These days, all my regular, monthly bills (that are the same every month) are entered into online bill pay a month (or 2) ahead of time. I enter then in Quicken as date paid, so I Always have an up-to-date electronic check register. But it is easy to set up for many months out. I usually just set them to be paid the due date (no late fees on any of these bills if they were to be late for any reason). The credit card balance - paid off monthly -is the only variable one and I pay that one a few days ahead of time. Though I schedule it the second I get the bill - yes.

    Most of my bills go on the credit card - so I don't have to worry about it. I just set those to pay when I get the bill. I don't have to physically pay them for another month, then. & the only "variable bill" I really have to worry about is the credit card. I only pay a few other bills every month (mortgage, health insurance, HOA, some utilities - balanced billing or flat rates).

    I like to review my statements and not be on automatic pilot, so I do tend to do one month at a time. I already set up all my March bills, for example. All paid - I don't have to think about it.

  3. debtfreeme Says:

    I pay everything as soon as receive it. I pay it all online so it takes about 45 seconds to make a payment and be done.

  4. Jerry Says:

    We are living overseas at the moment, and if you don't pre-pay you end up taking it on the chin every three or four months. You have NO insurance that the utility company will send you a bill every month, or that they even will check the meters. They simply get around to it when they get around to it, and that can lead to some monster bills. We, um, found that out the hard way.
    Jerry

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