Utilities bill leveling

[Nutria]

Anyone else do this?

About 18 months ago -- in October, to be precise, when our electric bill starts to drop -- I added up two years of electric bills (computer payment makes it so easy), divided by 24, added 5% and started paying that every month. It built up a nice credit balance for when the bills started to rise in April. Wasn't perfect, because of rising electricity prices, but did level for a while.

Last April, I did the same thing for our natural gas utility. Fortunately, my cost estimate was better.

[cooliemae]

I pay a set amount into a specific savings account each pay period to cover utilities and have the bills setup to automatic payment each month. I did this because our bills go from amount $100 a month in the summer to over $300 in the winter. So by doing this we've created a supplemental EF specific to utilities for about a year out now.

I think of this type of setup as just an updated version of the envelope system (and safer because I can't lose the envelope =)).

[Nutria]

I pay a set amount into a specific savings account each pay period to cover utilities and have the bills setup to automatic payment each month. I did this because our bills go from amount $100 a month in the summer to over $300 in the winter. So by doing this we've created a supplemental EF specific to utilities for about a year out now.

I got away from "lots of little accounts" because of bank minimum amounts. Now, we just have "checking" and "savings" (a big, virtual pile o' cash that is really a few savings accounts and CDs organized using a multi-column spreadsheet into as many micro- and macro-funds as I please). Currently, there are 22. All get accumulated into monthly. Some funds I hope to never touch them, others get drained bi-monthly, quarterly, semi-annually and annually.

I think of this type of setup as just an updated version of the envelope system (and safer because I can't lose the envelope =)).

Yeah. Carrying around physical envelopes full of cash is a disaster waiting to happen.

[Like2Plan]

We do the level billing/auto payment with the electric company, so they figure it out for us (they adjust 2 times a year).
Our bill has steadily declined over the years. 7 years ago it used to average 117/month. Last year, it was an average 69/month.

I have thought about doing this for the gas. But, I still haven't acted.

[Nutria]

We do the level billing/auto payment with the electric company, so they figure it out for us (they adjust 2 times a year).
Our bill has steadily declined over the years. 7 years ago it used to average 117/month. Last year, it was an average 69/month.

Better insulation and more efficient systems, or should I just hate you?

[Like2Plan]

Better insulation and more efficient systems, or should I just hate you?

LOL. Well, I think some part of it is because our DS left home. We also bought a new more efficient AC unit a couple years ago. Then, we switched over our Christmas light display to LED (we have a lot of lights ). And, over the past couple of years we have been converting our light bulbs to LED. (The LED bulbs are so wicked expensive, we have been doing it gradually.) That's all I can think of that has changed over the years.

[snafu]

I really like the convenience of both heat and electric/water/sewerage providers automatic, no fee, budget withdraw systems. They base their sum on previous year's usage, notify in September, effective October's payment, staying date consistent. I never found relinquishing payment control a problem.

[Koolmagicguy]

Better insulation and more efficient systems, or should I just hate you?

You'll hate me for saying this but where I live I pay $7-10 in the summer (AC 24/7) and $30-40 in the winter. 2.5-3.5 cents/kWh variable.

[Nutria]

You'll hate me for saying this but where I live I pay $7-10 in the summer (AC 24/7) and $30-40 in the winter. 2.5-3.5 cents/kWh variable.

Washington state?

[disneysteve]

We've been on the equal payment plan for gas and electric for years, as long as I can remember.

Our bill has also gone down a lot the past couple of years. First it was because DD started college. Then it was because in short order we replaced our furnace, central air, and refrigerator so the house got a lot more energy efficient. The billing amount has decreased but still hasn't caught up with those changes. As of our last bill, we had a $480 credit and July is our balance billing month. I'm sure that for the next annual cycle, they will lower the budget amount again.

[ESMonitor]

I'm not doing that, but I do have an phone reminder set up to go off at the beginning of each month for me to change the air filter, and most of the lights in my place are the new energy efficient light bulbs. That is of some help.

One thing I am doing similar is I have a dozen savings accounts set up with my bank where I allocate money each month at month-end as I feel needed. Some names of those accounts are auto repair, auto maintenance, home, medical, trips, ministry, CPAP, clothes, Ad Hoc, Christmas, optical.

I transfer a certain amount of money at the beginning of the month to a primary savings account. Whatever money I have left over at the end of the month gets assigned to one or more of those aforementioned accounts, so when the expense spike hits at a later date, I have money reserved in place to absorb some or all of the cost.

The key is to have a run of some good savings friendly months where I can allocate money to the accounts and fund them in advance.

[Nutria]

One thing I am doing similar is I have a dozen savings accounts set up with my bank

Our primary bank requires a minimum $300 to eliminate fees, so we use a few accounts, and a spreadsheet -- currently with 22 columns -- instead.

The benefit is that a "virtual fund" can have a tiny balance or even go negative, and the bank won't notice.

[ESMonitor]

Our primary bank requires a minimum $300 to eliminate fees, so we use a few accounts, and a spreadsheet -- currently with 22 columns -- instead.

The benefit is that a "virtual fund" can have a tiny balance or even go negative, and the bank won't notice.

Sounds good. There are no fees or minimum balances required with my bank on the savings accounts so that works for me. I use a budget spreadsheet too. I love Excel. In the monthly tabs, I have days of the month for the columns and cost category line items in the rows.

[Nutria]

Sounds good. There are no fees or minimum balances required with my bank on the savings accounts so that works for me.

Excellent.

I love Excel.

LibreOffice for me (and not just because I use Linux mostly; MSFT moved everything in Office 2010, and I don't like that!!!).

In the monthly tabs, I have days of the month for the columns

31 columns???

and cost category line items in the rows.

Almost the same with me, though mine is a combo budget and check register.

Since I know when we get paid, when bills are due and how much we need to save for future stuff, I can just "push forward" rows in the "check register" with dates for when each bill must be paid. Variable stuff like groceries and fuel get fake entries for the full monthly budget amount; each time we go to the grocery or guy gas, that fake entry gets reduced by the amount we spend.

Thus, I know what our checking account balance will be at the end of this month and next month, plus approximations of what it'll be on each day. I've also got a "template" tab used to create each new month. On Wednesday, 01-June I'll add the July tab, just like I added the June tab on 01-May.

The name of my spreadsheet is Cash_Flow_2016, if that gives you a hint as to my mind-set...

[feh]

Anyone else do this?

Nope. We pay for whatever service was used the previous month.