Today I’m talking about bill smoothing and how it work. Some companies like electricity can you do for you. You can also do it your self by adding up your yearly bill amount. You can bill smooth most directly to the bill except for rego here in Australia. For the rego I just put the money in a separate bank account.
So for example your electricity is $4,000 a year you would divide it by 52 if paid weekly, if paid fortnightly divide by 26 and if you are paid monthly divide by 12.
Then you can move onto the next bill and repeat the process until all the bills are done. I have set up all our payments from internet banking so we can adjust the amounts if required.
This can take along time to set up. Once setup you can save money on those pesky overdue fees.
I still bill smooth my rego I just put that into a separate account.