Bill Ranson

There are a lot of expenses for which we’re billed in large chunks. For example, consider your car insurance. In most cases, your auto insurer will send you an annual or semi-annual bill. If you pay the entire amount, you can avoid paying additional convenience fees (usually a few dollars). Otherwise, you can decide to pay a monthly amount which includes the convenience fees. It’s the same with your life insurance policy and your home property taxes.

Those people who consider themselves financially savvy might immediately think that paying unnecessary fees in order to enjoy the convenience of paying monthly is foolish. However, there are compelling reasons to do so. IN this article, I’ll describe the benefits of paying large bills on a monthly basis.

Advantages Of Paying Monthly

The first advantage comes from enjoying a higher yield on your savings and money market accounts than the interest rate implied by the convenience fee. For example, assume that your auto insurance bill is $1,300 for one year of coverage. If you elect to pay a portion each month, you’ll be required to pay an additional $2.50 fee (hypothetically). Let’s further assume that your savings account has a 4% yield (not uncommon with online banks).

If you were to put the $1,300 into your savings account and transfer the necessary amount to your checking account each month, you would likely come out ahead. In effect, you could earn more through interest than what you’d pay in extra fees.

Another advantage is related to budgeting. A lot of people place a high value on knowing what their expenses are each month. By writing a monthly check to cover a large bill, they can track their budget more easily, especially if the payments are sent automatically from their bank.

One of the realities of struggling to make a living is that finding the funds in order to pay off a large bill in one lump sum can be difficult. Returning to our car insurance example, many people might have trouble setting aside $1,300. Unexpected car repairs, medical expenses, and other factors can cause short-term cash flow problems. By contrast, paying a smaller portion each month can provide a little financial breathing room, even if that means having to pay a small convenience fee.

It’s important to note that every circumstance is unique. Choosing to write a check each month for large bills may not be appropriate for every situation. Nor is it appropriate for every person. Review your personal finances in light of your recurring cash flow needs. If you decide that sending monthly payments is the right choice for your circumstances, consider establishing an automatic payment plan with your bank. The convenience of having it drafted each month represents one less thing to worry about.

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5 Simple Ways To Lower Your Monthly Bills And Save Lots Of Money!

Here you’re going to learn several ways to save money every month by lowering your monthly bills.

There are lots of ways to save money, no matter how much of it you have – or don’t have!

Having struggled for many years paying my own bills, I learned many ways to save money. From simple things like food, gas, and clothing, to bigger expenses, like insurance and your mortgage.

All you need to know is where to look to find the savings.

Several Ways To Save Money

The first thing you need to do is eliminate ALL of your unnecessary expenses:

eating out on the weekends
buying lunch at work every day
magazine and newspaper subscriptions (especially those you can get online and at the local library)
cable TV (you’d be amazed at how many other ways you’ll find to spend your time once you get rid of cable TV)
groceries (you can save lots of money with coupons and specials.)

It’s OK to reward yourself once in a while, but if you are really looking to get out of debt faster, you owe it to yourself to save every single penny you can!

To find other ways to reduce your expenses, take a close look at your checkbook and credit card statements. You should also call your credit card companies to see if they will lower your interest rates, even if it is only for a short time.

You’ll be amazed at how many ways you can save money, especially once you start looking carefully at how you spend your money every month.

Shop Around For The Lowest Prices

For those expenses you can’t eliminate, it’s time to start shopping around for the best prices.

Once I realized you can shop around for just about ANYTHING you spend money on every month, I learned how to save myself SEVERAL HUNDRED DOLLARS each and every month!

In fact, by shopping around I ended up saving myself more than $750 a year on car insurance alone!

The same is true of many of your monthly expenses – like long distance telephone service, internet service, all types of insurance, mortgages, and in some places even your utility bills.

It DOESN’T take any special skills. All it takes is a few clicks and you can save yourself a bunch of money in no time at all!

So, if youd like to save yourself lots of money every month – and who doesnt – start shopping around and looking for ways to lower your monthly bills right away!