Put your bill paying on auto pilot
This is a simple tip that often gets overlooked. All you need to do is set up a seperate account just for bill paying, this works great with our Mortage Accelerator and you HELOC, but is not needed. Then set up all your reoccuring bills, that change very little in value, to auto pay from this account.
Sounds pretty simple, right? It is and it will save you more than you think….
Say you have several accounts at different banks. Take one checking account with a Visa check card and make it your bills only account. Direct deposit a set amount each week into this account. Then for every bill that will allow it, set up auto pay. For other bills, try www.mycheckfree.com. You can set up auto pay through this site.
The most luctrive way to do this is to play a little trick on your finances. Add up all your monthly bill, say it equals $2000 a month. Now take that $2,000 and divide it by 4 for each week in a month. So you now have a requirement to deposit $500 a week into this account.
Doing this will make your bill paying life much easier and much less stressful. You know that all bills are being paid correctly and being paid on time!!
The mind trick to this is that you are only dividing your monthly bills by 4 weeks. This equals 12*4=48 weeks. We are missing 4 weeks each year. That money also goes into the account, but never gets spend. So with the above figures, you make an additional deposit each year of $2,000 ($500 x 4)!!!
It is like a special project, vacation, emergency fund!! So take the time to set up this account, bas everything off the worst case month (4 weeks) and see yourself automatically saving a lot of money each year.
Streamline Your Debt Team