I read an article last week from the Dollar Stretcher on building your emergency fund. Most of it was things I would say I had already heard before but one bit really caught my attention. It was mentioned that paying your bills more frequently (as in when they come in rather than saving up for one or two sessions a month) saves you money. Actually, the idea is that it makes you more aware on a daily basis of what your intake and outgo is and thus less likely to spend/splurge on those smaller things that can really add up over time. I have just recently, in the last two months, switched myself over to paying the bills each week, rather than twice a month when DH gets paid. I would definitely say that I am saving more money this way. In the past, I would pay all bills due with his check, put a bit toward savings and anything left over would fund cash purchases til the next check. It seemed like I was always running out of money before the next check. Now, every two weeks I put aside 1/2 the mortgage payment, put aside a bit for savings and split the remainder into two - half for each week. I then pay that weeks bills with that weeks half and what is left over is for cash purchases that week. At the beginning of the second week, I pay any new bills and continue the same way. Since I am paying the bills at the beginning, I know I must make the remaining money cover our expenses that week, or better yet, reduce expenses and bank any left over for the emergency fund. I am more aware if I only have $100 dollars that I must make it buy both gas and groceries that I cannot buy $90 worth of groceries and a cute dog toy when I am in PetSmart. I find it forces me to be even more disciplined and even better at stretching my money. If I feel I really must have that cute dog toy, I will have to wait til the end of the week and buy it with any remaining money or even better, by that point, I will have decided that the dogs don't really need another toy to destroy and saved myself the $10.00. Anyway, this system seems to be working for me and I was wondering what others thought of this concept?
Does Paying Your Bills More Often Save Money?
August 13th, 2007 at 06:23 pm