anyone pay bills AHEAD??

[mudnuri]

While looking over what I will have going out this winter per month while I'm in school, I'm trying to come up with some ways to take the "burden" off so to speak.

I will have, before I start on sept 6th, the ability to pay my phone and power bill ahead by thru february. My fuel, I will be pre-buying, (that moneys already banked). My cell, I will be paying monthly still, as that is reimbursed for the time being at work. Insurance is paid in full for the year.

My phone/dsl bill is $66.00 a month, and my power bill runs about 48.00 a month, so this would be 330 for phone/dsl and 240.

I just got cable and will do the same for this once i see what it is a month with taxes etc. I'm guessing about 22 bucks- putting that about 125

If I put this 700 in the bank, I am 99.9% sure I will spend it on something else that is not a need, but more of a want. Of course not all at one, but I'll see things for 20 bucks here, 30 bucks there, and before I know it it will be gone.

I'd be missing out on a few bucks a month interest, but I'd know these bills were paid.

It would leave me with rent, gas, groceries, and cell. Basically thats it. Child support almost is almost equal to my rent.

If I do this, these bills would show back up in my budget, about the time I would get my income tax return...

This would allow me to work only minimally while attending school, and still give me time to be with the girls. I know that I am taking one of the hardest/most time consuming nursing pre-reqs this fall and spring, so I want to make sure I am able to devote more than enough time to it, and still be as active with the DD's etc.

Whatchya think?

Brandy

 

[The Sorrentino's]

I pay our household bills like that. I've got it down to where every bill is -100 that way our creditors owe us (in a way). I don't see anything wrong with that especially if you want to cut down your work hours to concentrate on school. Good luck!

Cadence

 

[Mickey527]

I did that this past year.
I was diagnosed with cancer and had to stop working for the entire year becuse I couldn't be around sick people while going through chemo.
My dad died 3 months before my diagnosis and he left me some money. I took the money and paid my bills for the year because I knew that other things would come up and I would be tempted to spend what I had.
I figured out approximately what my bills would be by adding up what I paid for last year then divided by 12. I then sent each company that amount multiplied by the 9 months I would be out of work.
Each month I get my bill with the amount of credit still in the account and the little note "Do not pay this month". It was such a relief as the months went on and my small savings ran down more and more.
I am going back to work in September and I think I will continue to pay the bills in this way, it is so much easier than writing all those checks each month.
My oil company is the only one that gives me interest on the balance in the account but I get such terrible interest from my savings account that it really doesn't add up to much that I am losing. Peggie

 

[bdcp]

That may work in terms of not worrying about the bills, but a financial planner would have a field day with this idea. You realize you are giving the companies your money ahead of time to earn interest on? You'd be better off putting it into a savings account and paying as you go unless it's a credit or loan account that costs you more in interest than you'll earn. But, for monthly bills like utilities, the companies love you for this because they get your money to invest for themselves. It's like getting a large tax refund every year, the only one who benefits is the one who holds the money.

 

[got2lovedisney]

I do something similar...when I check my first check of the month (I'm paid semi-monthly) I send out payments to the utilities whether I've received the bill or not. I always send extra $ that way when December/January come around I have a big enough credit that I can skip the payments and use that money for other things. (I have Christmas gifts then in January I have DD & my DBF's bday plus my niece and then 2 nephews in early Feb...that's a bunch I need to get back to back!)

 

[bettyann29]

That may work in terms of not worrying about the bills, but a financial planner would have a field day with this idea. You realize you are giving the companies your money ahead of time to earn interest on? You'd be better off putting it into a savings account and paying as you go unless it's a credit or loan account that costs you more in interest than you'll earn. But, for monthly bills like utilities, the companies love you for this because they get your money to invest for themselves. It's like getting a large tax refund every year, the only one who benefits is the one who holds the money.

I fully understand what you're saying but sometimes having the money is too tempting I personally do it where I get a larger amount of money taken out of my check so that when income tax time comes I get a pretty large amount of money.. I realize it would make more sense to just get that money each paycheck but I get tempted too easy and I enjoy getting a larger check each year and having enough to take a cruise or whatever it is that I want to do with it.. if I just got the money each check Id blow it and have nothing to show for it..

 

[mudnuri]

I fully understand what you're saying but sometimes having the money is too tempting I personally do it where I get a larger amount of money taken out of my check so that when income tax time comes I get a pretty large amount of money.. I realize it would make more sense to just get that money each paycheck but I get tempted too easy and I enjoy getting a larger check each year and having enough to take a cruise or whatever it is that I want to do with it.. if I just got the money each check Id blow it and have nothing to show for it..

EXACTLY why I am considering doing this in the first place...financial planners could have a field day with me, the 1% i'm losing on the "interest in a savings acct" I'd be paying more for them to tell me NOT to do it LOL yeah, I see where that would be a SMART thing to do

I fully understand I shouldnt give them MY money ahead of time, so they can INVEST it, but come on- the 240 bucks I'm sending them ahead, they're NOT making a killing off the interest trust me... and they're still billing me monthly, so they're still spending the 37 cents for the stamp, the $$ for the paper, ink and envelope, so they're not getting rich of investing my money trust me

Brandy

 

[pearlieq]

I fully understand I shouldnt give them MY money ahead of time, so they can INVEST it, but come on- the 240 bucks I'm sending them ahead, they're NOT making a killing off the interest trust me... and they're still billing me monthly, so they're still spending the 37 cents for the stamp, the $$ for the paper, ink and envelope, so they're not getting rich of investing my money trust me

If I did my math right, if you're saving $240 at 1% interest, the stamp you'd use to send the check each month costs more than the interest you'll make!

Yes, "in theory" it would be great if you saved the money and invested it, but for that amount of money you're not actually going to make enough money in any investment vehicle to cover the risk of dipping into the money a little here and a little there.

It sounds like you know yourself and your habits and have made a good choice!

 

[crazyme5kids]

I am starting to do this as often as possible. I love being ahead of the gun instead of under it so to speak!

 

[powellrj]

Our bank offers free online bill pay. Could you put the money into an account that you won't use, schedule the bills to be paid out of that money every month with the on-line bill pay. That way, you won't be tempted to spend the money, the bills will be paid, and if something were to happen, your money isn't tied up.

 

[Taja]

While I agree with the financial planners theory, I also agree with the OP. She knows her needs and habits best! Unless the inherited funds are sufficient to invest to produce income to cover expenses, the minimal amount of interest lost to gain comfort that basic costs are covered is negligible.

It's really difficult to concentrate on school when you have to worry about meeting basic needs such as housing and utilities. And that's without family responsibilties! Being able to work just enough to pay for the extras in life can make the academic year much easier!

I supported myself through undergraduate and graduate school and the first three years as an undergraduate were rough financially, despite a full tuition and books scholarship, including a small stipend. I still had to pay rent, utilities, food and transportation expenses. In addition to the business I started during my senior year in high school, I tutored, worked retail--just about anything except babysitting and food service (quite awful at both of those!)--to make ends meet. By the end of my junior year, the business was established sufficiently for me to pay myself a regular salary. Not a large one, but enough to meet basic needs! That made my life much more pleasant!

 

[Tjaleks]

The peace of mind you will get and the extra time you will have with the wee ones will be worth it. I did the exact same thing while I was in college and had two small children

IMO the less stress the better!!

 

[tinkerbell13]

I did it once, but not on purpose!! I accidentally sent my house payment(via online bill pay)to my car payment, it was about 4 times the amount! Sad to say that I also had a late fee on my house, because I did not catch my error for 2 weeks!

 

[swilshire]

I do it when I'm going to be on vacation. I also pay my gas bill for the whole summer in advance, since we don't use any then and just pay a minimum.

I think it's a great way to save time writing checks and stamps to mail them. If it makes you feel good .... do it!

Sheila

 

[raammartin]

We actually do something similar to this, but in our own way. We pay our "set" bills (mortgage, car note, any other set bills) on the 15th of each month for the following month though those bills may not get mailed out right then. This helps us to insure that that money will be there to pay those very important bills. We are a month ahead on our mortgage. You just never know these days if something will happen. We also round ours up like if a set bill is $222 each month then we send them $300. That will help pay it off quicker!

It's a peace of mind thing I guess. I am very particular about money in the sense that I want to know that everything is taken care of, paid, and I want to know where every cent goes. It helps us go on vacation and ultimately to WDW!

 

[jgates]

I admire your determination. I do this with our electrical bill as it is extreme in the summer and considerably more moderate in the winter (we use LP for our heat). So I pay the same amount every month during the winter in order to build a summer credit.

I also pre-pay winter fuel - normally this gives you a price break - however this year the price break is still around $1.40 per gallon. I think that is the highest we have ever paid. We may be running around this winter wrapped up in sleeping bags with the furnace turned way down!

 

[patsal]

I'm a teacher, so in June when I get my last paycheck, I make paymets for everything through the end of September. I have found that it really makes things easier. Just remember that if the bill is one with a "coupon" that needs to be sent back enclose all the months payment coupons so they credit you properly. I usually don't get my first check until somewhere around September 15th and with that the kids will need school clothes as well as all the things that "popup" in September--prepaid school lunches, pictures, lab fees, consumable books, music instrument rental fees, etc.

 

[tlbwriter]

I think this is a good idea, and the amount is too small to be concerned with investing it.

If you pre-pay for utilities, make sure they will actually credit those funds to your account. Several years ago, our city had a policy that any overpayment went to a fund to help people who couldn't pay their electric bills unless you specified otherwise. I knew someone who "donated" a lot of money she couldn't afford because she wasn't aware of that policy.

 

[Anastasia]

I think this is a good idea, and the amount is too small to be concerned with investing it.

If you pre-pay for utilities, make sure they will actually credit those funds to your account. Several years ago, our city had a policy that any overpayment went to a fund to help people who couldn't pay their electric bills unless you specified otherwise. I knew someone who "donated" a lot of money she couldn't afford because she wasn't aware of that policy.

I agree wholeheartedly with this. $700 is not enough money to be concerned about the lost interest (and I am the queen of moving money around to make sure I am maximizing my interest). However I would be concerned about the companies I am paying accounting for it correctly. As long as you check it out with them ahead of time, I think it is a great idea.

You have considered your needs and habits. It would be very easy for any of us to whittle away $700 and have nothing to show for it. You are being very responsible, and preparing yourself for what you know will be a difficult term at school. You are setting your prioriities so that you know that you will have enough time to spend with your girls, and doing the added studying. I think you should feel great about that and I wish you the best of luck!

 

[pospisil]

I work for a utility company, and we have quite a few customers do this. I do agree with a previous post that says you need to specify that the credit balance be applied to your account. Our system now won't let us apply more than $1.00 out of a payment to the Good Neighbor Fund, but our previous system would have let us apply as much as we wanted. After you send the payment, call in a few days and make sure that the credit has been applied correctly, it can save a headache in the future.