Our Charlestown Branch Manager, Josh Swetnam, shares his tips on how to avoid “bill shock”.
Ever opened a bill and wondered how on earth you’ll find the money to pay it? It might have arrived at a time where your budget is already stretched, or the size of the bill may be bigger than you expected.
If you have you’ll not only know how “bill shock” feels but will want to do everything in your power to avoid it happening again. The good news is that with a little bit of forward planning it isn’t hard to do.
Here is my two step tip for avoiding bill shock
1. List all the major bills that you pay each year and add up what they cost you in total last year.
If you haven’t kept your old bills you might have to check your bank statements to see what you paid. Include things like car insurance and registration, house and contents insurance, water and electricity. You might even include Christmas expenses.
2. Divide that total amount by 52 or 26 (depending if you get paid weekly or fortnightly) and set that amount aside in a separate savings account each pay period.
Any type of account separate from your everyday account will work, though you don’t want one that has monthly fees on it. As your money grows you’ll have funds set aside for when the bills come in.
No one likes bills, but it’s a much better feeling when you open them knowing that you already have money aside to pay them.
No more “bill shock”!
We can help you to set up the right accounts to manage your money. Call us on 1300 651 400 or visit a local branch today.
Are there other ways that you manage the payment of your bills? Please share your own tips.