Never Pay a Big Bill Again
Imagine never having to pay a large bill again; car insurance, health insurance, council rates, unexpected bills and more. These are all things that can be avoided by following one simple budgeting technique. It’s all a matter of being organised.
This technique can be used across all bills and is extremely useful for the big annual bills that always tend to be a pain in dealing with. The easy to implement tip is to simply pay all bills ongoing versus in one lump sum. It’s that simple and only takes a few minutes to setup.
Most businesses are setup to take electronic payments at any point in time. Depending on when your bills are due, just create an automated repayment cycles within your online banking and once set up you will never have to pay a large unexpected bill again.
For example, if you have an annual car insurance payment of $1200 and are paid once a fortnight, simply do the following: Take the bill $1200 and divide it by 26 (number of pays) which works out to $46.15 a pay. Set your repayment cycle to deduct $46.15 each fortnight – set and forget…in less your billing amount changes 🙂
This can be applied on multiple bills or just some depending on what works for you. Not only does this eliminate any large bills, it will also help you in avoiding any late payments.
If for some reason a company does not accept incremental payments, then set up a savings account where you can have the money set aside each pay until the due date. This is also something you should set up anyways as an emergency fund for when large unexpected bill pop up, things as medical expenses or urgent home or car repairs, etc.
In addition, setting up individual savings accounts for various events like Christmas presents, holidays or big ticket items can be very useful. Little amounts put into these savings accounts throughout the year can keep you out of debt as you can book or purchase things with cash instead of putting them on credit.
It’s a very simple process that not only helps with budgeting but allows you to be in complete control of your finances, minimising any surprises and alleviating any potential financial stress.
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