Keeping your money in your account as long as possible, paying things early? Is that the right thing to do?

 



Should you pay your bills early?  How far should you go into credit with your bills?  

Whenever I work with budgeters, their advice seems to always be: "break down your repayments into small amounts and pay them weekly to places you have regular bills"

When I speak to people who have, at any time in their lives sought budgeting advice, this is how they operate.  Often to the point where they are hundreds, even thousands of dollars in credit with large power companies, phone companies, rates, or insurance payments.  

Does this mean you are lending money, interest free, to these large companies?

Do they deserve your loan?

Can you afford to give them an interest free loan?

Here's an idea, have a separate bills account for that small amount each week, or fortnight. The money remains in YOUR bank account until it is due to be paid.  

Make the bills account so your eftpos card can't be used on it, money will still be there when your bill is due.

Do what works for you.  Think about doing it this radical way for while for a trial: 

  • pay the bill on the date it is due to be paid, possibly a day before so it allows for a delay with the bank and you can make the most of any on-time payment discounts.
  • pay the exact amount due, to the cent, get out of the habit of paying extra and going into credit.
  • if you don't trust yourself to "not spend the money" before it is due, then put a set amount into a "bills pay" account and let it build up there.  
All of my advice in future blogs will rely on you doing this.  It can save you thousands on debt payments once we put this whole system together. 

It is very important your money remains YOUR money as long as possible.

In my classes I have had a number of people who were over $500 ahead in their power bill, but had no money for their groceries for their kids this week, or no money for petrol to get to and from work this week.  

This is NOT OK!

We are worth more than this.  You have the ability to manage your own money.  You may have made mistakes in desperation in the past, if you have been following this blog, you will know that I have!  

You are adults, you make your own informed choices, make these decisions yourself.  Once you do you will feel better about your finances, and indeed your worth.

Have a fabulous evening, remember you are totally in control, and remember, "you are good with money!"  Don't let anyone convince you otherwise.  Just by reading this you are educating yourself.  

You will get ahead, I promise you.

You can do this!

Enjoy the results you will see very very soon.


Comments

  1. L-J10 April 2023 at 09:07

    Thanks Sarah, I never thought of it that way! How silly to give the power company an interest free loan. I'll correct this going forward. Much appreciated 🙏🏽 ☺️

    ReplyDelete
    Replies
    1. Grannie Sarah's Solutions10 April 2023 at 19:46

      Well done, it is an interesting approach on a very common issue.

      Delete
  2. Anonymous12 April 2023 at 06:32

    Thank you Sarah, appreciate your advice and common sense.

    ReplyDelete
  3. Grannie Sarah's Solutions12 April 2023 at 13:15

    You are most welcome, it is good to have a different viewpoint to make you consider all your options, especially when it comes to finance.

    ReplyDelete

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