Unlike your friendly neighborhood teller, I have no incentive to entice you to sign up for an online bill pay program. My motive in such a quest is to encourage simplification of your monthly budgeting process.
People are hesitant to pay bills online for various reasons: security worries, time
for the initial setup process, intimidation of a sometimes non-user-friendly Web site, and lack of personal service.
While these are valid concerns, online bill pay can assist in financial planning by providing routine, automatic transactions, reducing late fees, and providing a clear view of monthly expenses.
Signing up is usually free, requiring paperwork at the bank, creating a user ID and password, familiarizing yourself with software, and entering information about your payees. Bills can be paid automatically from your account on a certain date.
The best part is that online bill pay can itemize all the information you need for your monthly budget. Trying to cut back? Print out your online statement and highlight expenses that went to something besides necessities—like shopping sprees or expensive nights out.
If you’re worried about security, discuss this with bank personnel. They can provide information on risks and specific security enhancements.
KENTUCKY LIVING 2011 FINANCIAL PLANNING GUIDE
For more financial planning information