Easy Bill Paying Technique

I want to share a short and simple post on a technique that I use to pay some of my bills. The example that I will use for this post is an electric/heating bill, since most people have to pay for electricity/heating if you live in the United States. Each month, the bill that you receive will vary based on your usage. Some months, the bill amount will be low, while other months, it will peak and can become quite expensive.

What I personally do, is to set up my own budget billing. I don’t do this through the utility provider, I just do this on my own. Say for example, that my bill came to $50, I would pay $100, and have that $50 excess credit roll over to the following month. In the next month, say the cost of the services provided came to $60, but because I had the $50 excess rolled over, the amount I am to pay is only $10. Even though the bill says I am to pay $10, I will pay another $100 for that month. What I try to do is to build a cushion each month, which helps to reduce any peaks I may experience when my usage becomes high in extremely cold/hot weather when heaters and air conditioners are used. Sometimes the cushion can become high where each month, the amount due is $0. If the cushion you built is high enough, you may be able to go a few months without paying any money out of pocket. This is a good technique if you have a little extra to pay towards your bill, and this technique is not limited to just utility bills. If you pay a bill each month, then this technique can be applied.

If you have another bill paying technique, please share below! Please leave any comments, questions, or feedback below.

4 Comments Add yours

  1. Rakkelle says:

    Do you do autopay?

    Liked by 1 person

    1. jamaicancpa says:

      I only use autopay for some bills because the service provider offered a discount for using that methods and the amounts are the same for each month. For the bills not on autopay, I retain control on deciding when and how much to pay, which is usually more than the amount that the bill states.

      Liked by 1 person

      1. Rakkelle says:

        Okay, I understand. I realize that a few people are against autopay but I live for it. Makes my life so much easier. The convenience is incredible because in the past despite setting a reminder for myself I will still forget and then there comes the late fee. 😢

        Liked by 1 person

      2. jamaicancpa says:

        Yes, if it autopay works for you, then you are doing the right thing. No need to lose money on late fees!

        Liked by 1 person

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