One good thing about the current economic news is that even a little bit of extra cash can have a significant impact on your monthly budget. If you've already cut back on entertainment and non-essential expenses and still don't see any breathing room, consider "budget billing" as a way to manage bills that vary from month to month.
Budget billing is the process of dividing the total yearly cost into 12 equal (or close to equal) payments. It is most often applicable with utility companies and it can provide a number of benefits for people dealing with tight budgets.
- Convenience - For planning purposes, it is the most convenient feature available. By looking at past usage, you can estimate the cost of your future bills. This means that there are no HUGE gas bills during the winter replaced by HUGE power bills in the summer. Often, budget billing options are combined with paperless or "e-billing" which also saves money.
- Flexibility - Because the amount of the bills stays relatively the same, your budget has breathing room during the months when you can most use extra cash (suring the holidays and summer vacation). Over time, having more cash during the times when utility costs are most expensive gives you greater purchasing power throughout the year.
- Knowing what to expect - With budget billing, there are few, if any, surprises. If the bill goes up, it goes up slowly so that everything else in the budget doesn't have to suffer for the months that usage is high. Because the bill is based on your actual usuage, it is recalculated periodically. Sometimes, your bill will actually go down! In that case, the surprise is a good one.
To find out more about budget billing, contact your local utility companies and get enrolled today!
