Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 06-28-2021, 11:37 PM   #41
gone traveling
 
Join Date: Dec 2018
Posts: 1,196
Autopay all the way..
Nick12 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-29-2021, 05:06 AM   #42
Thinks s/he gets paid by the post
bclover's Avatar
 
Join Date: Mar 2015
Location: philly
Posts: 1,198
Quote:
Originally Posted by Yipper View Post
thanks - this is the kind of thing that worries me... how often does something like this occur? And while 700 isn't going to change anyone's life... what if the decimal place was even further askew and PECO took 70,000?
I will say it only happened once. I think I was more annoyed by the fact that they were so glib about it.
like "yeah, we totally screwed up but hey we're not going to fix it for you"

I will admit what @scrabbler1 said the ease of it some times makes me lazy.

I guess it's a personal preference thing, while I do on line payments and banking I simply prefer to set it up monthly. it takes me all of 10 minutes and forces me to sort of pay attention
__________________
My darling girl, when are you going to realize that being "normal" is not necessarily a virtue? it sometimes rather denotes a lack of courage~Aunt Francis
bclover is offline   Reply With Quote
Old 06-29-2021, 05:16 AM   #43
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Morton
Posts: 2,177
I automate everything and never regret it.
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 06-29-2021, 05:55 AM   #44
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 733
I auto-pay everything that I can.
The only CON is that if I die at home, it might be a very long time before anyone notices.
DayDreaming is offline   Reply With Quote
Old 06-29-2021, 05:57 AM   #45
Recycles dryer sheets
 
Join Date: Dec 2016
Posts: 187
Autopay everything. A few years ago my CC got compromised twice in six months. Frustrating to change to new CC#. Now most come out of my checking account. I get paper bills or an email/text and I check my accounts daily. Never had a problem.
Carol1862 is offline   Reply With Quote
Old 06-29-2021, 06:10 AM   #46
Thinks s/he gets paid by the post
iloveyoga's Avatar
 
Join Date: Jan 2017
Location: Des Moines
Posts: 1,183
I also have everything automated, money going in and bills coming out. I put everything I can on my cc and pay that monthly (automated). I do look at my checking account daily to be sure all is in order. I have not had any issues with this approach.
__________________
Retired in 2013 and we are living the dream!
iloveyoga is offline   Reply With Quote
Old 06-29-2021, 06:50 AM   #47
Thinks s/he gets paid by the post
 
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,350
It looks like I am in the very small minority on this. Perhaps I should reconsider and automate. In doing this, how do you set this up? Do you have it taken from a savings account or checking? Do you keep a hand written check log? How do you, or do you, run a bank balance? Do you just take the bank's word? I'm trying to wrap my head around the daily operational process.
CRLLS is offline   Reply With Quote
Old 06-29-2021, 06:58 AM   #48
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 4,757
While I electronically pay almost all of our bills, I autopay almost none of then. In the distant past I had enough issues turning off autopay that for me, it was not worth the trouble. Things are probably better, but this old dog is happy with his current tricks . 10 minutes a month to pay the bills is not a big deal for me , and is also my time to check for errors.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
jollystomper is offline   Reply With Quote
Old 06-29-2021, 07:06 AM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2009
Posts: 6,310
Quote:
Originally Posted by CRLLS View Post
It looks like I am in the very small minority on this. Perhaps I should reconsider and automate. In doing this, how do you set this up? Do you have it taken from a savings account or checking? Do you keep a hand written check log? How do you, or do you, run a bank balance? Do you just take the bank's word? I'm trying to wrap my head around the daily operational process.
The monthly payments I automated go back more than 20 years, well before the businesses had set up websites to make things easy. Back then, I sent a blank or voided check which included the routing number and checking account number. These days, such as when I set these features up for my dad, all I had to do was to set up an online account at their website, then go to their automatic payment feature and enter the same info from a check I would have mailed them. Just make sure to write down your username and password for future reference.

As for bookkeeping, I just keep using my checkbook register to enter the payments the same way I would when I mailed them checks. They would usually take the money out when the payment is due, so I'd have to remember to post them into my checkbook register on the due date, a minor hassle sometimes.

If I used a credit card to pay the bill, that would sometimes complicate my record-keeping. I have a homemade checkbook-register spreadsheet to categorize my expenses, so if I use a CC I'd have to allocate the CC payment into different buckets.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 06-29-2021, 07:24 AM   #50
Thinks s/he gets paid by the post
 
Join Date: Feb 2021
Posts: 1,529
Quote:
Originally Posted by CRLLS View Post
It looks like I am in the very small minority on this. Perhaps I should reconsider and automate. In doing this, how do you set this up? Do you have it taken from a savings account or checking? Do you keep a hand written check log? How do you, or do you, run a bank balance? Do you just take the bank's word? I'm trying to wrap my head around the daily operational process.
We have several bills auto-charge to a rewards credit card so we get the points.


We have several other bills auto-draw from our checking account because they either don't offer a CC option or they charge a processing fee for doing so.


Every company sends a bill/e-mail in advance when your statement is ready so you can review it and address any issues that you find (rare but it happens) before the payment gets made.


I do keep a hand written checkbook register so I just enter the auto-payments the same way I would enter a hand written check. When the electric bill comes and says our bill is $302 and it will be drawn on the 29th, that's what I write in.


I do balance our checking account statement every month. The auto-payments are absolutely no different than any manual payments. They are listed as transactions just the same.


There's really nothing different except for the fact that I didn't have to manually make the payments.
disneysteve is offline   Reply With Quote
Old 06-29-2021, 08:19 AM   #51
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 14,808
Quote:
Originally Posted by REWahoo View Post
+1

However, that's only using a cash-back credit card. I avoid allowing any business to direct debit my checking account after a bad experience many years ago.
The above is very wise.

Most of my auto-pays are now done with a CC. The few payments that come from my checking account are me telling Bill Pay to send NNN dollars each month. I never let any organization reach into my account and tell the bank "Send $NNN of Chuck's money to us. He won't mind".
__________________
The worst decisions are usually made in times of anger and impatience.

Self proclaimed President for Life of Outliers United.
Chuckanut is offline   Reply With Quote
Old 06-29-2021, 08:52 AM   #52
Thinks s/he gets paid by the post
 
Join Date: Mar 2013
Location: Coronado
Posts: 3,135
Quote:
Originally Posted by CRLLS View Post
It looks like I am in the very small minority on this. Perhaps I should reconsider and automate. In doing this, how do you set this up? Do you have it taken from a savings account or checking? Do you keep a hand written check log? How do you, or do you, run a bank balance? Do you just take the bank's word? I'm trying to wrap my head around the daily operational process.
There are a lot of different ways to manage this. What I do is setup the payments at each payee's website. I have most bills charged to a credit card, but there are a few (electric, water, estimated taxes) that will only pull from my checking account.

I keep track of everything in Quicken. I have Quicken reminders setup for all my payments, so they appear in my registers a few days before the funds will be deducted from my accounts. The ones where the amount is the same every month are set to auto-enter; for the others, I just update the amount on the reminder when I get the bill by email.

I do a Quicken update approximately weekly to download transactions from my financial institutions, match up what I've already entered, and add anything else like interest or dividend payments. Quicken marks the downloaded transactions as 'cleared' and if anything doesn't match what I entered, I can figure out what went wrong then (usually a typo on my part). When I get bank/cc statements, I use Quicken's reconcile feature to change the status of the transactions to 'reconciled'.
cathy63 is offline   Reply With Quote
Old 06-29-2021, 08:53 AM   #53
Full time employment: Posting here.
 
Join Date: Feb 2007
Posts: 740
Quote:
Originally Posted by Yipper View Post
What are peopleís thoughts on automatic payment of bills - like utilities, cell phone, cable, etc?

I like the convenience but maybe Iím missing a key downside? I do watch the bills each month before theyíre paid to avoid surprises.

What do you do?


This is a hard NO for me. I never went to be in the situation, where if something goes wrong, I have to chase after my own money.
With the advent of online payment, I can pay all of my bills myself online Iím like 10 min. (Or less). I did ask my bank once if I send and online payment and it does not get there for some reason who is legally at fault. The bank said they were, and would incur all penalties, write letters of apology etc. That works for me..
armor99 is offline   Reply With Quote
Old 06-29-2021, 09:10 AM   #54
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 2,608
Quote:
Originally Posted by Chuckanut View Post
...I never let any organization reach into my account and tell the bank "Send $NNN of Chuck's money to us. He won't mind".
That's fine if you have a choice. DW and I both have heavily-subsidized retiree health insurance from our prior employers. The only option for paying the monthly premium is automatic bank draft. We're certainly not going to refuse health insurance based on concerns about the bank draft.

The way I see it, we trusted them for decades with our bank info for direct deposit of our paychecks. So we trust them now to pull the health insurance payment. Never a problem after 35-40 years.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.7% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 06-29-2021, 09:43 AM   #55
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,697
Quote:
Originally Posted by cathy63 View Post
There are a lot of different ways to manage this. What I do is setup the payments at each payee's website. ...
I don't want payees getting direct access to my checking account. Almost all of my payments are via Schwab bill pay. They have a list of payees where the payee will send Schwab an electronic bill. Once I have selected a payee and clicked the necessary boxes, Schwab takes care of contacting the payee and setting up the exchange. This takes care of most payees and almost all regular bills. I get an email identifying the payee and the bill amount well before the payment date so I can stop or alter payment if necessary. I don't recall ever having to do this.

Where the payee is not listed, I can manually add the information on the payee and provide my payee account number. Doctor co-pays fall into this category. When a co-pay bill arrives, I just go into the Bill Pay page and enter the amount and the date I want the bill to be paid.

A related category is a regular bill that is not available electronically. For those I simply set up a recurring payment in the correct amount.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 06-29-2021, 10:27 AM   #56
Thinks s/he gets paid by the post
Cobra9777's Avatar
 
Join Date: Jul 2012
Location: Texas
Posts: 2,608
Quote:
Originally Posted by OldShooter View Post
I don't want payees getting direct access to my checking account...
That's why many of us use a cash-back credit card for bills... plus the cash-back, obviously.

For me, the more interesting question is whether to set up the CCs themselves to automatically pull from the checking account. For many years, I resisted this, and paid them manually using Fidelity's bill-pay service. But then, I missed a CC payment once while traveling. They charged a late fee plus suspended all cash-back rewards for the remainder of the year. Probably hit the credit report as well, though I never check it.

So I started looking into auto-pay for the CCs. I actually started a thread on that subject here. After reading all the responses, I made the change. That was 2.5 years ago and I haven't had a single problem. For me, the convenience is worth it. Plus, the CCs are all major financial institutions, not Dry Creek Valley Electric Coop. So I think the risk is minimal, and manageable if something did go wrong.
__________________
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.7% SI: 2 pensions, some rental income, SS later
Cobra9777 is offline   Reply With Quote
Old 06-29-2021, 10:33 AM   #57
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 3,631
Cash-back credit card for as many bills as possible.

The rest I pay electronically via bill pay...pushed, not pulled, from a checking account.

Paper statements still come for credit cards & those bills for which I push payment just in case I drop dead.
ncbill is offline   Reply With Quote
Old 06-29-2021, 10:35 AM   #58
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 4,758
The only thing that we have not automated is our credit card statements. Like others they vary widely.

We have directed as much of our automated payments as possible to our credit card account. It is a very simply process to cancel at any time. Plus, we want the points.
brett is offline   Reply With Quote
Old 06-29-2021, 10:46 AM   #59
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Morton
Posts: 2,177
Quote:
Originally Posted by DayDreaming View Post
I auto-pay everything that I can.
The only CON is that if I die at home, it might be a very long time before anyone notices.
never thought of that one!!
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 06-29-2021, 11:00 AM   #60
Full time employment: Posting here.
 
Join Date: Oct 2020
Posts: 557
We have a couple things like the water bill that can't be automated, so DW pays a few hundred dollars ahead so we don't forget. With bonds yielding almost nothing, it doesn't seem worth trying to optimize that.
Exchme is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Motorhome purchase? Pros/Cons! greenhm Life after FIRE 223 07-27-2008 03:49 PM
Pros and Cons of New Forum Software TromboneAl Forum Admin 42 06-06-2007 06:06 AM
TIPS: Buy Bond or Bond FUND? Pros & Cons please! Jane_Doe FIRE and Money 67 11-20-2006 09:29 PM
after-tax contributions to 401K - pros/cons? simple girl FIRE and Money 14 10-12-2006 01:27 PM
Index Funds Pros and Cons Pale Rider FIRE and Money 91 09-29-2006 10:38 AM

» Quick Links

 
All times are GMT -6. The time now is 03:02 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.