Never Miss Paying Bills with This Simple Tip!

Who likes paying bills?  Of course, no one enjoys the outflow of money from their bank accounts, but I am talking about the procedure itself.  

The bill-paying process is hectic and time-consuming, though being responsible for meeting your payment deadlines is a vital part of keeping your finances healthy.

We all get busy and often forget the things that can be most important.  But as a business owner with too much on your plate, can you avoid missing deadlines? 

It is understandable when cash flow is low that you may not make that payment on time.  You may need to make a weighted decision to accept that the late fee as the lesser of the evils.  

However, not paying your bills on time can be a poor habit even when you have the money. It is a behavior that can costs you late fees, reconnect fees, and bad marks on your credit score. Then your cost multiplies when you add in the time cost of the inconvenience of your lost service privileges, higher interest charges as well as the cost brought on by a low credit rating.

Today’s banking technology offers automatic transfer options to pay these bills at the scheduled time. Maybe you want to pay more on your credit card than the bare minimum (and you should), but why not set an automatic debit for the minimum monthly payment? This small payment is manageable and not likely to overdraft the bank account if you forgot to plan for it. This way, you make sure your bill is always paid on time without late fees and gives you excellent credit ranking. You can then set up an extra principle payment at your convenience to knock down the remaining balance.

Many people find that keeping track of automatic payments challenging, and it can be. 

You can simplify the problem by using a separate bank account that you use exclusively for automatic withdrawals.  Transfer the funds needed to pay your bill to the designated account, and your bill-paying chore is now easy peasy.   

You can take this a step further by setting up two systems like this, one for your personal auto banking and one for your business auto banking.  This keeps the IRS happy as you will not commingling funds.  This system also keeps your money straight and saves you from bouncing checks (if you still even write them). It makes things so easy to keep things on track and so much less frustrating!

Yes, this system may give you a few extra banking accounts. If you set it up right with your bank, you can avoid multiple bank service fees.  

After resisting automatic bill payment for years but it is SO stress relieving and freeing! Try it and I bet you will like it!