#LifeHack 6. #AutomateBills: Set up automatic payments for recurring bills.
Setting up automated payments for bills ensures timely transactions without the need for manual intervention each time. This not only saves time but can also prevent potential late fees or lapses in service due to missed payments.
Steps for Bill Automation:
1. Inventory of Bills: Start by making a list of all recurring monthly bills – utilities, mortgages, subscriptions, etc.
2. Choose a Reliable Bank: Ensure your bank offers a robust online banking system with the ability to set up automatic payments.
3. Schedule Payments: Most service providers offer options for automatic debit. Alternatively, your bank’s online portal will likely have options for setting up recurring payments.
4. Monitor: While automation reduces manual effort, it’s crucial to occasionally check statements to ensure correct amounts are deducted and identify any discrepancies.
5. Maintain a Buffer: Keep a small buffer in your account to prevent potential overdrafts if a bill is slightly higher than expected.
Time and Money Savings:
Automating bills can easily save around 10-15 minutes per bill monthly, considering the time taken to log in, review, and make a payment. If you automate ten bills, that’s a savings of up to 2.5 hours monthly.
From a monetary perspective, automating ensures you never miss a payment, potentially avoiding late fees. Assuming you prevent even one late fee per month, you can save between $10 to $35, depending on the bill.
Automating bill payments can reclaim up to 2.5 hours of your time monthly and save you $10 to $35 by evading late fees.