Photograph Credit: iStockphoto

Knowing that a successful year will not materialize on its own, we must plan and prepare for a prosperous 2013.

Throughout the 31 days of January, I will choose one topic each day to prepare or schedule for this year.

Without preparation, I know I will forget, miss, or overlook certain items. If you desire an organized year, then join me in this adventure of Planning for Success for a prosperous 2013.

To receive a daily e-mail around 11:00 a.m. with the new posts of each day, subscribe to my free daily newsletter. In case you miss a post in this series, I will provide the link to each day as the month progresses. 🙂

Day 12: Setup Bill Pay

If your calendar looks anything like mine, then it is getting full. 😉 For me, seeing a full schedule is a good thing. This means that I have jotted down what needs to occur, and I just need to follow the plan. The nice part is I don’t have to get it all done today. By assigning each task a day, I can accomplish the items scheduled for today and leave the rest for their appointed day.

In stretching our dollars, we have already marked the due dates for monthly bills on our calendar. By doing so, we can follow the schedule and pay prior to or on the due date while preventing late fees.

Bill Pay Option

To assist with recurring payments, your financial institution probably offers a free bill pay service. Think of it as writing an electronic check each month. Instead of using paper, an envelope, and a stamp to deliver your payment, your bank electronically sends the payment per your request.

Bill Pay Setup

For me, the initial setup took some time, but then scheduling only takes seconds. If you have never used bill pay before, but are interested, here are some basic steps – though each financial institution has a slightly different system:

1. Sign up for on-line banking. Start at your financial institution’s website. If you have a login, then you are setup.

2. Login to your account.

3. Select the Bill Pay option. You might need to access your checking account to find this tab, button, or link.

4. Setup new account. For each bill you want to pay, you will need to setup a separate account, i.e., electricity, cell phone, cable, mortgage, credit card, etc.

5. Choose date to pay. I suggest paying a few days prior to the due date as the process may take a day or two to post.

Tracy’s Tip: If your budget is tight and you need to wait for a deposit before paying a bill, then don’t use the bill pay option as your payment might arrive late. Instead, choose to make the payment through the provider’s website, i.e., Verizon Wireless. The payment will post quicker.

Just be aware of your provider’s policies regarding time frames, holidays, and weekend. Some providers post immediately, like Verizon Wireless; whereas, others will not post until the next business day.

6. Indicate recurring or one-time payment. For payments that are consistently the same, like your mortgage, you can choose recurring. Then your payment is made every month per your request on the same day. You will not need to adjust the amount or timing each month. I like knowing that our mortgage gets paid because bill pay automatically transfer the money from our checking to our mortgage provider.

If the payment changes each month, e.g., your utility bill, then schedule a one-time payment entering the amount. You will need to schedule this payment once a month, but it only requires you to login to your account, choose the provider, enter the amount, select the payment date, and update.

7. Confirm your choices. This verification might be listed as set, pay, confirm, update, or something similar.

8. Adjust your payment. Once you use bill pay, check your accounts to verify payment. If you have problems, then access your bill pay setup to move the payment date, change the amount, or stop using this option.

9. Logout of your account. At the end of each session, you need to logout and close the tab or window. I always closeout the tab to verify that the Internet link between by computer and our financial institution closes. If left open, a hacker could gain access.

Though not the answer for everyone, bill pay is a great service to make payments electronically. Besides saving paper and stamps, you can schedule your payments in advance and your financial institution will do the rest.

In using time wisely and planning for success, setup bill pay through your financial institution. I love bill pay for our recurring monthly bills that have consistent payments. This service saves me money, energy, and time.

As you consider your options for using time wisely and stretching your dollars, bill pay might be an answer. Remember, it is not all or nothing. You can setup some accounts through bill pay while paying other accounts via check, in person, or on-line through your provider. Whatever your choice, pay on time to prevent late fees. Happy savings!

Question: Do you use bill pay through your financial institution?