Tuesday, December 11, 2007

Automating Bills and Savings…

Currently, I pay my mortgage each month by logging in to the company’s website. I am thinking about automating my payments with the company’s Pay/12 program where they automatically deduct my payment and any additional principal I designate from my checking/savings account each month. So long as the payment date that I select falls within the first and the sixth day of the month, there is no fee for this service. Since I get paid once a month on the next to last day business day, this wouldn’t be a problem for me. Also, I am planning to remain with my company and practice law so my pay schedule won’t change.

I am trying to automate as much as possible. My 401k contributions of 5% are automatically deducted. I use my bank’s bill pay service to automatically pay my condo assessments, car insurance and electric bill. All of my AT&T services are charged to my credit card in addition to my home security system and I pay the balance off in full each month. Once my student loans enter into repayment, I will also allow them to automatically deduct my payments so that I can receive a .25% interest rate reduction.

What do you automate?


SavingDiva said...

I have to admit that I love automating my bills! I'm too lazy to remember to pay my bills on time!

I have my retirement contributions (401k and Roth IRA) automatic, but I move my cash savings myself. I think the move makes me feel a little bit of good, so I hope that it makes me want to save more!

Escape Brooklyn said...

Everything! I just set it up for 2008 so my bank will pay my mortgages, home equity loan, and student loans automatically. (Which I would suggest doing for your own mortgage payment, actually, because wouldn't you then have until the 15th to pay it without a late fee instead of only the 6th?)

And my 403(b), Roth IRA, ING, and now Ameritrade accounts are all set up to transfer money from my checking account regularly, either once a month or every other week when I get paid. I also automated my Netflix payment and gym membership.

In 2008 I'd like to automate a charitable contribution of some sort, too, instead of just giving money haphazardly.

Anonymous said...

While I agree with your execution, I would recommend centralizing your billpay through your bank.

It makes it easier to "see" what bills are going to be paid on what day. Furthermore, you only have to deal with one website should you need to make changes.

Chitown said...

Good idea anonymous. I can certainly set up automatic mortgage payments through my free bill pay service. The only thing I have to worry about is when there is an escrow adjustment and the payment amount is incorrect. I'm pretty sure they will reject the payment amount at that point and then my payment might be late.


Chitown said...

Escape Brooklyn,

If there is a charity that you like, they may be able to set up automatic payments directly to your credit card if you like. World Vision does this for me.