Pay as many bills as possible electronically. If you are looking at this blog, you have at least limited access to the internet. Thus, this is a tool available to you. Each month, I pay as many bills as possible electronically. I login each month to pay my DirecTV bill, a student loan bill, my Cingular cell phone bill, and my Credit Card bill. Additionally, each month another student loan payment, the XM Radio payment, 2 life insurance payments, the car insurance payment, and the phone bill are automatically debited from my credit card or bank account. Making electronic payments is frugal in several ways:
- I save stamps! 10 bills are payed electronically each month, saving $4.10 per month, or $49.20 per year! That's not huge, but remember frugality is all about saving in little ways which adds up huge over time. Each bill you begin paying online will save you $4.92 per year!
- It is more difficult to steal financial information shared over a secure encrypted internet connection than out of an unsecured and unencrypted mail box in front of an empty home.
- If you keep enough funds in your account to set up the payments to go through automatically (and hopefully you do!), you will save by not having to pay late fees because you forgot to send in a bill. I have paid late fees on water, gas, or electric probably 5 times in 2 years, simply because I forgot to mail off the payment in time. That wouldn't happen if those bills were paid electronically automatically.