52 Week Money Savings Challenge
It’s week 16 in the 52 Week Money Savings Challenge! We’re more than a quarter of the way through the challenge. Yay! Last week, we chatted about using the auto payment option on bills to save some money. Not all offer that but some do. This week, we’re going to chat about how paying in advance can save a little money too.
Saving Money by Paying in Advance
Last week I mentioned that some companies allow you to sign up for their auto-pay program which can cut out a processing fee. In the same way, some companies allow you to cut those monthly fees by paying the whole bill in advance. Our insurance company offers this for us. If we can save enough during the year, when renewal comes up, we can save that $7 per month processing fee by paying the whole auto insurance bill in one lump some. There are some pros and cons to doing this:
Pros-
- Possible instant savings
- Less number of bills due each month
- Gained interest if using a savings account like Capital One 360
Cons-
- Large amount of money going out at one time
- Planning ahead so you have the money saved
Paying bills in advance or in one large payment can be hard on the budget so a couple ideas to help with that is 1) create a savings account specifically for that bill or several of them and start depositing money into the account every time you have extra until you’ve built it up to the amount you need; or 2) if you receive income tax returns, set a specific amount aside in a designated savings account to cover those bills when the next cycle is due.
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I’m so glad to have you on this journey with me. I’m looking forward to each week and I hope these posts and the emails are not only helpful to you, but encouraging as well.
- If you are new and just now joining, subscribe to the weekly email and download your own copy of the 52 Week Money Savings Challenge printable. All current subscribers are entered into an Amazon drawing held at the end of the month.
- If you want to catch up on the reading of each week, go to our 52 Week Money Savings Challenge page and check out each week listed, as you’re able. Don’t worry about catching up on savings amounts unless you’re able to, just start with the current week and add extra if/as you’re able.
- Want to open an online bank account to help keep things separated? I personally use Capital One 360 and have for years. It takes a few days for transfers to complete if you’re using a local bank
Before we wrap up this week, I want to hear from you! 1) What are you most excited about in participating in this challenge? 2) What are your concerns or frustrations about setting money aside?
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