a month ahead on bills?

**ansley** · 10-06-2009, 01:52 PM

Someone was talking about being a month ahead on their bills. My understanding is that you have enough in the bank (not EF) at the end of one month to pay the next month's bills. I like the idea of being able to pay a bill as soon as it comes in but is it reasonable for someone on BS2 to have the EF and 1 month's worth of bills set aside? Should the EF act in place of this? What about on other BS? How would this be different than getting paid once a month?

What are your thoughts?

**Greebo** · 10-06-2009, 01:56 PM

I would say that having the 1k BEF + 1 months bills set in reserve is not unreasonable. Someone disciplined enough to do this isn't going to have a problem sticking to the budget, IMO.

**PlainCash4** · 10-06-2009, 02:28 PM

I say do what ever works for you. I do like you. Pay as soon as it comes in. Sometimes i pay extra on my power bill so it will be that much less next month. YOu can do the same with your phone bill. They'll credit it towards your next months bill

**missmanny** · 10-08-2009, 09:03 PM

I like to have the money aside to pay our bills also. It is a little bit difficult to do this straight away but I guess that you could forgo some of your snowball one month so that that money is sitting the cheque account waiting for the bills to come in?

**Thevail** · 10-08-2009, 10:14 PM

I always do this whenever I can. For me there really is just a whole different feeling to life when you're ahead of the 8 ball instead of perpetually behind it.

I think it also gives a bit more flexibility to life in general. For example: Going out of town to a sudden family emergency.. gas money is right there! Found the best deal ever on canned beans.. go ahead REALLY stock up.

I know that for a lot of people this is what the EF is for.. but I'm too crazy possessive of my EF. Once I put money in it it nearly kills me to take any out. I thought I was being kinda nuts... but here we are month 3 unemployed, and it's tight. But I still have the money to pay for the half a cow I ordered this spring. That will save us literally about $2000 over the next 10 months. It is good to leave your EF ALONE.. until there is an honest to god E.

**NikoSan999** · 10-09-2009, 04:18 PM

Totally agree with Thevail. Used to be able to pay immediately and most of the time pay ahead somewhat. Sometimes wouldn't have a phone bill for 3 months. EF was in place and like Thevail thought everything was set in place for the long haul of several months. Murphy shows no mercy.

**Karen1** · 10-09-2009, 04:25 PM

I have at least 1 months future bills in the checking acct.

I never pay more to a utility company. I have direct withdrawl on all. I want my money to earn me interest, not give them any extra for their own use.

I would not include the "one month ahead" bills in my Emerg. Fund. That is for literal emergencies. Should not be touched. Just kept being added to as long as one can. When it gets bigger, take some out, buy a CD, and keep the savings rolling for you.

but yea, everyone love "backup" money! I sure do!

**littleplum** · 10-10-2009, 04:07 PM

I think that that is how YNAB works. You pay this month's bills with last month's income. You know, instead of paying last month's bills with this month's income.

**Wendy99** · 10-10-2009, 08:19 PM

I pay my bills ahead, but I guess I kind of do it different. We get paid bi weekly here. We use one pay to pay the car payment & car insurance. The next pay we pay all the utilities, cable, internet etc. Those bills are always paid with that pay check (whether we have the actual bills in our hands or not). So it's not uncommon for us to have a 0 balance on our bills. I feel best doing that , that way the money is out of my account and on the bills where it needs to be.

**Backtoreality** · 10-10-2009, 11:28 PM

I love having all my bills paid the first week of the month - so I guess I'm one month ahead.?. I too get paid every 2 weeks with a "mileage" check in the middle of the month. On the first or second of the month I sit down and pay all the bills (with last months last check). The rest is just sitting in the account gaining a little interest. Now my DH gets paid weekly and all of his check goes to the savings.

I love knowing that I have everything covered and it something unexpected happens - we are good.