It's that time of year again where expense are high with all the extra we want to do, holidays, presents, entertaining etc.

So I started getting my monthly utility bills and realized it's that time of year where I don't really need to pay these monthly expenses.

Here's what I do. During the year, I pay extra every month. Say roughly 10-20% or in my case, I just round up to the next 1K. What that does is have this surplus credit lying in the various monthly accounts so come December & January when spend is high and you could do with the extra cash, you don't need to worry about paying these as they've been paid in advance over the year and the money you don't have to pay those months is now extra and available for you to spend when you probably want to most.

Just something I've been doing for the last decade and it kinda makes me happy at the end of the year knowing there's a few less things to worry about and some extra cash to have a better festive season.

Remember though, you've been sacrificing all year for this benefit so make sure the spend is still worth it.

N4P

That's a very good idea! :)

Really like this idea N4P, makes you appreciate the levels of experience and knowledge (from both punters and SPs) on the site that can contribute positively. I remember a bank that used to have a facility where they would round up your card payments, and put the difference into a savings facility.

Great idea,thank you so much for sharing the idea:)

Ah thanks N4p. Sounds like a plan.

On 2022-12-21 10:27:39 Need4Passion said:
It's that time of year again where expense are high with all the extra we want to do, holidays, presents, entertaining etc.

So I started getting my monthly utility bills and realized it's that time of year where I don't really need to pay these monthly expenses.

Here's what I do. During the year, I pay extra every month. Say roughly 10-20% or in my case, I just round up to the next 1K. What that does is have this surplus credit lying in the various monthly accounts so come December & January when spend is high and you could do with the extra cash, you don't need to worry about paying these as they've been paid in advance over the year and the money you don't have to pay those months is now extra and available for you to spend when you probably want to most.

Just something I've been doing for the last decade and it kinda makes me happy at the end of the year knowing there's a few less things to worry about and some extra cash to have a better festive season.

Remember though, you've been sacrificing all year for this benefit so make sure the spend is still worth it.

N4P

Great post and awesome advice.

On 2022-12-21 10:27:39 Need4Passion said:

Remember though, you've been sacrificing all year for this benefit so make sure the spend is still worth it.

I do that too, only downside is the loss of growth you could have accrued over a 12 month period by sticking the excess into interest bearing facilities.

On 2022-12-21 14:24:43 JamesSpader said:
On 2022-12-21 10:27:39 Need4Passion said:
Remember though, you've been sacrificing all year for this benefit so make sure the spend is still worth it.


I do that too, only downside is the loss of growth you could have accrued over a 12 month period by sticking the excess into interest bearing facilities.

Well, I used to do that before these 10 years. Truth be told is it's not that much interest lost and the tax man still take his portion of it so not worth it for me. I'm paying these bills every month anyway and in the same transaction and less effort

N4P

I have applied this Principle to my bonds paid. A few extra rands will ensure me less interest paid over time as well as shorten my bonds repayment period.

And I too pay extra into my utility bill all the time...love the stress free feeling of not owing in periods when earnings are not strong but, continue paying irrespective. Just knowing there is that possible sabbatical to payment works wonders.

RB.

@RB: Yes, this is the best to follow this approach on a bond, because you also score interest tax free!