Paying your bills is not a fun chore, but if you want running water and adequate shelter, this monthly ritual is a must. Thankfully, you can save some cash in the bill paying process to use for more fun things — like watching a movie or spending a night out with friends.
How is it possible to actually save money while paying your bills? By implementing a few of these tips, you will not only save yourself money, but time and stress as well. Here’s how:
1. Sign up for online bill pay.
Paying your bills online is actually safer and quicker than sending a check in the mail! And a lot of banks and financial institutions actually prefer for you to pay bills online because it’s more secure and convenient for them. Online bill pay is an essential strategy when paying your bills.
2. Use bill pay reminders.
In addition to signing up for online bill pay, you can use alerts and bill pay reminders to help save you money by avoiding late charges. Manilla’s service is perfect for this because it links your accounts in one place and alerts you when bills are due — so no more late fees!
3. Prepay your bills.
Paying more than your total account balance is an excellent way to cut down on the amount of interest you pay on loans. Additionally this is a smart strategy to help you pay down debt faster. And the benefits don’t stop there; you can get a yearly discounted rate for prepaying, which could enable you to build a small financial emergency savings.
4. Enroll in automatic payments.
Setting up automatic payments is a great way to save time and money. And it’s also very convenient since most companies provide the option to pay automatically using your debit or credit card.
And since your payment will be automatically deducted from your account on the same date of every month, you can easily “set it and forget it”. Even better, some companies will give you a discount for automatic enrollment!
5. Pay off the highest interest rate first.
Having a higher interest rate means your hard-earned money is going towards interest, instead of paying down the balance on your loan. This forces you to stay in debt longer, and that’s not something any of us want.
Calculate which bills have the highest interest rate and pay down those first, then tackle the other bills with a vengeance.
6. Take advantage of promotional offers.
This option needs to be used wisely, in conjunction with a solid debt-repayment strategy. Nevertheless, it’s very effective when put to good use.
Promotional offers like balance transfers, 90 days same as cash and super low interest rate offers, are smart strategies that can be used to your advantage. When using these offers sparingly, they can help you saves hundreds of dollars in interest fees.
Better bill paying habits can lead to better money management, which helps you save more money and build wealth. All of which are the foundation towards reaching financial freedom.
Carrie Smith is the owner and editor of Careful Cents, a blog that specializes in helping small businesses and solopreneurs earn more money in less time through systems and financial organization. She also writes for The Huffington Post, AllBusiness Experts and several other business websites. Connect with her on Twitter @carefulcents.
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