Automating bill payment has many benefits. Automating your bill-paying can save you time, reduce administrative costs, and increase savings. But, you need to be aware about Convenience Fees, Grace Periods, and Security Issues.
Automate bill-paying
Automating your bill-paying can help you save time and avoid paying late fees. You will love the ability to ensure that your bills are paid on-time each month if you own a business. It can also improve your credit score. Customers will appreciate your ability to keep their payments current.
Paying bills manually can take as long as 15 minutes. If there are errors, it could take even longer. This means that if you have 20 bills to pay it can take you up to three hundred minutes. This amounts to five hours of lost productivity. Automating bill-paying online can help you schedule recurring payment and automatically pay them.
Convenience fees
Many companies make their money by charging customers for bill-paying with credit cards. Although these fees are sometimes referred to as "service fees", they do not necessarily mean that they are legitimate. Some fees are simply a response to the question: "How would I like to pay?" You can avoid these fees by using standard payment options, such as cash, check, or ACH transfer.
Some utilities, such as Duke Energy, do not charge a convenience fee for bill-paying via credit card. Others add these fees to the overall cost. According to a recent study, the standard convenience fee for each payment by U.S utilities is anywhere from $1.50 to almost $4. This would be nearly $48 if you made 12 monthly payments.
Grace periods
A grace period is granted to those who pay their bills on time. However, if you do not make your payment on time, your account will immediately begin accruing interest. Therefore, you should pay your bills as soon as possible to take advantage of your grace period. However, you need to be aware of the fact that this grace period does not apply for all types of bills.
The most common type of grace period is the one that lasts for at least five days. This allows you pay the bill on time and without penalty or interest. While grace periods can be useful, they shouldn't be used in excess. If you believe you may need a longer grace, you can ask your creditor whether you can change the due dates of your payments.
Security concerns
According to a recent survey, over half of consumers expressed concern about the safety of online bill payment. Identity theft or the theft of personal data are the top security concerns. You should also be concerned about Internet security and mailbox theft. Even though online bill-pay is becoming more popular, many consumers are still concerned about its security.
COVID-19, a COVID-19-related bill-paying service that allows for online bill payment, has helped to accelerate this shift away from paper-based billing. These are all factors that consumers consider important, but they still want to be able to pay bills online. In fact, a recent survey by PYMNTS shows that 49 percent of consumers now use a digital bill-paying service.
FAQ
Which age should I start investing?
On average, $2,000 is spent annually on retirement savings. If you save early, you will have enough money to live comfortably in retirement. You might not have enough money when you retire if you don't begin saving now.
You should save as much as possible while working. Then, continue saving after your job is done.
The earlier you begin, the sooner your goals will be achieved.
If you are starting to save, it is a good idea to set aside 10% of each paycheck or bonus. You might also be able to invest in employer-based programs like 401(k).
Make sure to contribute at least enough to cover your current expenses. After that, you will be able to increase your contribution.
Should I buy mutual funds or individual stocks?
The best way to diversify your portfolio is with mutual funds.
They are not suitable for all.
For instance, you should not invest in stocks and shares if your goal is to quickly make money.
You should opt for individual stocks instead.
Individual stocks offer greater control over investments.
Online index funds are also available at a low cost. These allow you to track different markets without paying high fees.
How do I begin investing and growing my money?
Learning how to invest wisely is the best place to start. You'll be able to save all of your hard-earned savings.
Also, you can learn how grow your own food. It is not as hard as you might think. You can easily plant enough vegetables for you and your family with the right tools.
You don't need much space either. Just make sure that you have plenty of sunlight. Plant flowers around your home. They are also easy to take care of and add beauty to any property.
You might also consider buying second-hand items, rather than brand new, if your goal is to save money. The cost of used goods is usually lower and the product lasts longer.
Do I need to diversify my portfolio or not?
Diversification is a key ingredient to investing success, according to many people.
In fact, financial advisors will often tell you to spread your risk between different asset classes so that no one security falls too far.
This approach is not always successful. In fact, you can lose more money simply by spreading your bets.
For example, imagine you have $10,000 invested in three different asset classes: one in stocks, another in commodities, and the last in bonds.
Suppose that the market falls sharply and the value of each asset drops by 50%.
You have $3,500 total remaining. But if you had kept everything in one place, you would only have $1,750 left.
You could actually lose twice as much money than if all your eggs were in one basket.
It is crucial to keep things simple. Do not take on more risk than you are capable of handling.
How long does it take to become financially independent?
It depends on many factors. Some people can be financially independent in one day. Others take years to reach that goal. It doesn't matter how much time it takes, there will be a point when you can say, “I am financially secure.”
The key to achieving your goal is to continue working toward it every day.
Which fund is best to start?
When you are investing, it is crucial that you only invest in what you are best at. FXCM, an online broker, can help you trade forex. If you want to learn to trade well, then they will provide free training and support.
You don't feel comfortable using an online broker if you aren't confident enough. If this is the case, you might consider visiting a local branch office to meet with a trader. You can also ask questions directly to the trader and they can help with all aspects.
Next, choose a trading platform. Traders often struggle to decide between Forex and CFD platforms. It's true that both types of trading involve speculation. Forex does have some advantages over CFDs. Forex involves actual currency trading, while CFDs simply track price movements for stocks.
Forex is more reliable than CFDs in forecasting future trends.
Forex can be volatile and risky. CFDs are often preferred by traders.
To sum up, we recommend starting off with Forex but once you get comfortable with it, move on to CFDs.
Statistics
- Some traders typically risk 2-5% of their capital based on any particular trade. (investopedia.com)
- As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement — your employer match counts toward that goal. (nerdwallet.com)
- Most banks offer CDs at a return of less than 2% per year, which is not even enough to keep up with inflation. (ruleoneinvesting.com)
- According to the Federal Reserve of St. Louis, only about half of millennials (those born from 1981-1996) are invested in the stock market. (schwab.com)
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How To
How to Invest In Bonds
Bond investing is a popular way to build wealth and save money. But there are many factors to consider when deciding whether to buy bonds, including your personal goals and risk tolerance.
If you want financial security in retirement, it is a good idea to invest in bonds. You might also consider investing in bonds to get higher rates of return than stocks. Bonds might be a better choice for those who want to earn interest at a steady rate than CDs and savings accounts.
You might consider purchasing bonds with longer maturities (the time between bond maturity) if you have enough cash. While longer maturity periods result in lower monthly payments, they can also help investors earn more interest.
There are three types available for bonds: Treasury bills (corporate), municipal, and corporate bonds. Treasuries bills, short-term instruments issued in the United States by the government, are short-term instruments. They have very low interest rates and mature in less than one year. Companies like Exxon Mobil Corporation and General Motors are more likely to issue corporate bonds. These securities are more likely to yield higher yields than Treasury bills. Municipal bonds are issued in states, cities and counties by school districts, water authorities and other localities. They usually have slightly higher yields than corporate bond.
Look for bonds that have credit ratings which indicate the likelihood of default when choosing from these options. The bonds with higher ratings are safer investments than the ones with lower ratings. Diversifying your portfolio in different asset classes will help you avoid losing money due to market fluctuations. This helps protect against any individual investment falling too far out of favor.