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Alright, let’s talk about something most people don’t even think twice about: automatic draft for bills. Sounds boring, right? But hear us out—this little system can either make your life ridiculously easier or quietly sabotage your finances. And since we’re all trying to survive on tight budgets, you need to know how to play the game right.
Surviving on tight budgets means knowing how to play the game right.
The Magic of Paying Bills 3 Days Early
First of all, forget about paying bills “on time.” That’s rookie-level stuff. Real pros pay their bills three days early. Why?
Late Fees? Not Today, Satan: You’ve got a buffer in case something weird happens, like a banking delay.
Protect Your Credit Like Your Reputation: One missed payment and suddenly your credit score takes a nosedive. Don’t let that happen.
Peace of Mind Is Priceless: No last-minute panic when you realize the payment is due TODAY and you’re stuck in a checkout line with bad Wi-Fi.
Boost Your Credit Score: Your credit score loves a low credit utilization rate (how much of your credit limit you’re using). Paying early actually lowers your balance before it’s reported to the credit bureaus, making you look like a financial rock star.
Cut Down on Interest Charges: Most credit cards calculate interest daily based on your average daily balance. Paying early lowers your balance faster, which means less interest to pay. Over time, this could save you hundreds, if not more.
Free Up Available Credit: Need to use your credit card again soon? Paying early gives you back that available credit, so you’re ready for the next purchase or emergency without maxing out your limit.
The Sneaky Problem with Credit Card Auto-Draft
Here’s where it gets tricky—and where companies hope you’re not paying attention. When you let your credit card or service provider set up an automatic draft, they’ll schedule it for the due date. Sounds fine, right? WRONG.
Paying on the due date gives you zero wiggle room. You lose control over the timing, which means you can’t take advantage of that sweet, stress-free, three-day buffer. It’s like handing someone the wheel of your car and hoping they don’t drive it into a ditch.
Take Back Control: Use Your Bank Instead
Here’s what you do: skip letting the company call the shots and set up an ACH payment from your bank. That’s just a fancy term for paying bills directly from your account.
Why It’s Better: YOU decide when the money leaves your account. Want it sent three days early? Done.
How to Set It Up: Log into your online banking. Go to the “bill pay” section. Find the bill you want to automate, and set it to pay a few days ahead of the due date. Boom—control restored.
A Pep Talk for the Working Class Hustlers
Look, managing bills on a shoestring budget isn’t glamorous. Jesse and I know it's hard work, and it’s easy to feel like the system’s rigged against you. But here’s the truth: as a small business owner, you’ve got more power than you think. Small moves, like taking control of your payments, add up over time. They give you breathing room, peace of mind, and one less thing to stress about.
You’re doing the best you can with what you’ve got—and that’s no small thing. We are so proud of you! Keep making smart moves, and don’t let anyone tell you you’re not crushing it.
The Husfriend and I
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