Life is always busy for most of us especially when we live in the metro cities with the ever growing expenses, time-demanding traffic, and competition. As a result time management has become a difficult task. Working hours have become strenuous.
However, if we put some little time every month to plan our payment due dates, we will surprised how much we could save! That’s true, it is important to schedule and plan the payments to gain efficiency. Besides saving us time and money, it will give us peace of mind and benefits of long-term which will result in better quality of life.
A Penny Saved is a Penny Earned !” Benjamin Franklin
As we all know, planning the payment is not an easy task when we don’t run on a planned budget or when the financial status is not going well. All our lives have ups and downs and it is very important to not loose focus on the financials to protect ourselves from loosing more. Nobody wants to miss a due date and pay the penalty fee, get negative score on credit systems, or loose peace of mind answering to phone calls from the billing companies. There is a simple and effective solution – Planning Ahead.
Let’s explore the benefits and soon, in another post we will write how to plan effectively.
1. Saves you real money
Managing payment due dates allows you to save
money by not having to pay the penalty fee, by avoiding multiple trips or last
minute cab trips to the merchant, avoiding payments at 3rd party
payment centres that may cost you additional processing fee, and finally and
most importantly utilizing your card, discount vouchers, and loyalty program
benefits. Note, with most merchants and banks you may also expect some reward
points, discounts, or cashback if you set-up automatic payment method. Certain credit card
may even have up to 5% to 10% discount with utility bill payments. Such collected
reward points and cashbacks accumulate over time. This means you have the
liberty to spend it in any way you desire either it be your dream vacation or
an important expenditure. So why not take the golden opportunity and use it to
2. Provides peace of mind
By planning due dates well ahead, you can
reduce stress. There is no pressure to
keep track of payment dates and worry about timely payments. The automatic
payment plan can be of great help. Your bank or credit card will handle it all.
It also saves a lot of time which can be invested in much cooler activity!
3. Improves your credit score
When our credit card payments and loan EMIs
are paid on time, our credit score with the centralized credit rating agencies
will improve and we will become eligible to apply financial products such as
credit cards with cashback offers or loans such as mortgage loans or personal
4. Helps to focus on important objectives
Planning payment due dates can help to
improve your performance. You will be able to focus more on important
commitments and give your best without having to worry about petty issues. Good
peace of mind means that you can focus on your important objectives and ensure
ways to achieve them in the finest possible way.
5. Helps stay within budget and avoids debts
With an efficient planning in place, we can
control our budget. Planning helps to identify if any early action needs to be
taken to make payments such as cutting down unimportant expendure before it
happens. Most importantly, it may help you avoid borrowing whether it is from
friends and family or bank like financial institutions.
6. Tracks spending and helps to improve financial status
Planning can help to track spending and
identify places where overspending is being done. Categorizing purchases along
with managing a spending journal can assist to avoid extra spending and justify
each purchase. After all, every penny we earned with our hard work is worth
protecting it. This is the best way to build our wealth that will lead to financial
freedom and a better life.
Overall, planning exercise can be a milestone in ensuring financial well-being. Planning due dates will help financial health and long-term benefits. It will also improve time management and planning skills. Moreover, it also allows the brain to be more focused and make well-informed decisions.
Let’s start planning our bill payments and start saving!
Please share your thoughts and tips in the comment section to help us and other readers learn more.