How far ahead are you on your bills?

[MICKIMINI]

We rack up the credit card rewards for instance we had a spend $300 on utilities and get $45 back (3 months) no brainer. In NH most homeowners prebuy oil in June at a discount so no surprises and I put that on the SWA on which I had a 20% bonus this year. Life insurance is a hefty once a year bill and I get 1.5% on that. Groceries/gas (15% for a long time), auto insurance, electricity, medical expenses go on the highest paying credit card or one with the biggest bonus. We own our home so don't pay interest on that.

We recently bought a smart TV and got almost $300 in rewards from Chase, Best Buy, Disney and Discovery and cut the cable cord. I can't control inflation, but I look for ways to keep our expenses relatively stable annually so we "own" any increases we get monthly in the new year.

We fly free with SWA points earned and this past year have over 2K in cash back. I can't make much interest at the bank, but I can sure maximize my credit to put cash back in our pocket. I have been working seriously on this for about six years. We are a few years out from retirement so I'm all over it.

That is why I pay ahead as it pays me back!

 

[jen7233]

Pay ahead on what type of bills?

No, I just pay monthly as things post. I have everything EXCEPT credit cards set on auto draft right now. Bills just come out monthly from our associated checking accounts, have a few accounts for different purposes, I like it that way, it works for me. Those are rent (a lot), utilities (gas, electric, water), life insurances, car/rental insurance (every six months), internet, etc. We do pay a few bills on our credit cards, if the company allows us to pay that method without a fee. Those are just the trash collection, AT&T cell bill, Orthodontist x two, instrument rental, a few other smaller things like Netflix, Roblox.

Now the credit cards, I am not auto drafting, we pay those on the app or site, and kind of whenever no set method. It's by preference. DH pays his Amex cards on the due date, I pay our Chase and my Chase cards all the time, when things clear pending.

 

[georgina]

I see most people don’t like the way I’m doing it. The only thing I was ahead on when I had one was a mortgage. I was usually ahead about six months. Plus I paid extra. Haven’t had a mortgage in 12 years. Than covid hit. Had about 6 weeks of 32 hours than about 8 weeks or so of 40 hours. Than I started doing things different. Always paid my bills on time never been late on one bill my entire life. Interest rates are very low on savings accounts. Just looked it up mine is at 0.02 percent with td bank lol.

You do you! You CAN do better with an online savings account. Marcus by GS is paying 0.5%. Not huge, but better than the .01 or .02% banks are giving. That's where I'm keeping my savings for the year.

 

[amcnj]

I was never intentionally ahead on any bills. Though I did pay extra principal each month on the mortgage.

I have been unintentionally ahead when a utility messed up on a meter reading or calculating what I owed and overcharged me.

 

[tvguy]

18 months ahead on our car payment. Retired last week and was paying ahead while working to give me some breathing room because we will be living off savings only for the next two years. Everything else is month to month. No mortgage. House has been paid off for 21 years......the advantage of buying a modest home and not moving for 38 years.

 

[jimmymc]

I paid off my car about 2 years early at the beginning of this year.

For student loans, I just set a dollar amount higher than my minimum monthly payment, and I'm about 3 years ahead of schedule with a planned payoff date of 2026.

Rent is paid every month, no need to pay ahead.

Credit cards I just pay off in full each month. I keep a savings account to pay off big things like vacations, but I will still put them on cards to get the insurance perks and reward points.

 

[amylevan]

I will point out that there’s a big difference in paying ahead on things that you are paying interest on because you are ultimately saving yourself money. So paying off your mortgage, car loan or student loan quicker is a good idea (assuming you aren’t paying credit card interest rates, those should be paid in full first…)

Paying the electric company for electricity that you haven’t yet used is different.

 

[robinb]

I will point out that there’s a big difference in paying ahead on things that you are paying interest on because you are ultimately saving yourself money. So paying off your mortgage, car loan or student loan quicker is a good idea (assuming you aren’t paying credit card interest rates, those should be paid in full first…)

Paying the electric company for electricity that you haven’t yet used is different.

Also, AFAIK paying a car loan or mortgage ahead doesn't mean that you don't owe your regular payment. It means that your principle is reduced and the length of your repayment is shorter.

 

[DLgal]

Also, AFAIK paying a car loan or mortgage ahead doesn't mean that you don't owe your regular payment. It means that your principle is reduced and the length of your repayment is shorter.

Yeah, you can't "pay ahead" on a car loan or mortgage. You will still owe a monthly payment until the loan is paid off.

 

[amylevan]

Yeah, you can't "pay ahead" on a car loan or mortgage. You will still owe a monthly payment until the loan is paid off.

Eh, not always true. My last car loan sent me monthly bills. I paid ahead to reduce interest/length of loan, and I eventually was getting statements where $0 was due. I think maybe they were hoping I would stop paying so that they could recoup some interest.

Mortgages, no.

 

[jimmymc]

Also, AFAIK paying a car loan or mortgage ahead doesn't mean that you don't owe your regular payment. It means that your principle is reduced and the length of your repayment is shorter.

That is correct for car loans and mortgages.

However it's not true for federal students loans. I'm a few years ahead and don't technically have to make a payment until 2024.

 

[dclpluto]

Yeah, you can't "pay ahead" on a car loan or mortgage. You will still owe a monthly payment until the loan is paid off.

I could when I had a mortgage. I use to pay my mail. As soon as they got their check they will send me the next month. At one time I was ahead about 6 months ahead. It’s been over 12 years since I had a mortgage so maybe times have changed.

 

[wishing4PA]

I see most people don’t like the way I’m doing it.

I have done like you in the past ... many years ago.

Also, AFAIK paying a car loan or mortgage ahead doesn't mean that you don't owe your regular payment. It means that your principle is reduced and the length of your repayment is shorter.

This is one reason I don't "pay ahead" now. In these cases, you literally can't just pay ahead. You can pay extra on the principal though, and I've done that recently.
The other situation I ran into years ago when I was single and could "pay ahead" is having a company send me back a refund. I was trying to stay ahead, but it didn't mesh with how they did their accounting, so it couldn't be paid ahead under ordinary circumstances.
FWIW, the benefit to me of paying ahead was never having to worry was a bill immediately due. I could travel without having to double-check that a bill was going to arrive and need to be paid before I got back. That part was great!
But with my experience of having gotten the refund before, if I were to try to pay ahead now and take a trip, I'd be concerned that all my efforts might be for naught, and I'd come home to a refund check and a bill at the same time.
(Of course these days most of us *can* pay our bills fairly easily from afar.)

 

[wishing4PA]

I could when I had a mortgage. I use to pay my mail. As soon as they got their check they will send me the next month. At one time I was ahead about 6 months ahead. It’s been over 12 years since I had a mortgage so maybe times have changed.

I think times have changed. When you had to mail in the next payment along with the next little page from your payment coupon book, the coupon identified which month the payment was for. Now a lot of us don't get those coupon books with our mortgages.

 

[tasha99]

We have an emergency fund, but it's in the bank. I wouldn't pay bills ahead of time. What if we switch providers or cancel a service? I want to hold on to my own money, not give it to businesses ahead of time. God forbid if one went out of business or bankrupt--you'd never get the money back.

 

[a1tinkfans]

No paying ahead here. Pay on time. We have always maintained an Acct with about a years worth of bills payments ..just in case.

 

[DL1WDW2]

I told my son to pay off all his credit cards …why keep money in bank for hackers … nothing is safe online. He works for Disney so he knows he will be working forever ! Haha Seriously tho Is it safer to keep funds in certificate of deposit or money market . I didn’t want him to have auto overdraft protection-on checking connected to his savings .

 

[RamblingMad]

I pay when my bills are due, and I have a large emergency fund.

I don't want to be paid ahead on either my vehicle or my home. If I'm going to pay more, I'd rather pay down with additional principal. I can always go ahead and recast my mortgage to a lower monthly payment in the future.

 

[Eastern]

I pay my real estate taxes as soon as I get them for the current year. I'd rather my town have the money than the bank. I also do it with credit cards because it keeps the avg daily balance lower. Just how I like to do it. Interest you'd get on any of these amounts is minimal.

OTOTH I pay my tv/internet provider on schedule because I always think I am ready to cancel...

 

[QueenIsabella]

I don't pay ahead. I don't even pay extra on my mortgage, although we have with past houses. We could pay off the mortgage tomorrow, and the plan is to have it paid off when DH retires, but it's no rush, interest rate is low.

I do pay my insurance bills annually, which saves payments and charges--I never considered it "paying ahead", just avoiding the extra fees.

But hey--if it makes the OP feel more in control of his finances, good on him. As one who has money anxiety, I'm all about making the choices that help you sleep at night.