Why I Choose Not to Autopay and Why You Should Too
Financial experts say to put bills, especially credit card bills, on an auto payment schedule. With only a few exceptions, I choose not to use autopay to stay on top of my monthly bills. Here’s why you might consider doing the same.
My Rent is Apparently Not a Fixed Bill
My monthly rent should be consistent month to month, right? Only, back in February, the system screwed up and tried billing me a thousand dollars more than usual. I already pay too much to live where I do, and I was in no rush to hand them a bonus.
I was also looking over the itemized charges and noticed a $15 fee for liability insurance. Erm, not so fast. My renter’s insurance carries enough liability to get that waived.
You might think me crazy for getting irked by $15, but first of all, that could pay for lunch. Second, had I not been paying attention, I would have been handing over $180 over the span of a year. I’m already paying $300 for a stupid Fetch service I never use but which more companies are requiring as part of their lease agreements. (Come to think of it, I really should find a way to fight it.)
To be fair, in the span of six years and three property management companies, this was the first time such a mistake happened. I can be something of a cynic though and believe that if a glitch happened once, it could happen again. In my opinion, it is always easier to get a vendor to fix an incorrect balance before a payment than it is to get it fixed after. At that point, they’ve already been paid and have less incentive to make things right.
Credit Card Balances Fluctuate
My credit card spending shifts depending on the season. Even if it didn’t, you can rest assured I comb through my statements to look for any anomalies. I’ve experienced three credit card hacks in the past two years. On the whole, that’s not terrible, but again, even one anomaly is enough to make me review each statement before it gets paid.
I’m in no hurry to automate a payment that is going to wildly swing from one month to the next.
Damn Those Subscription Charges!
I’ve now been paying for Disney Plus for three or four years. After watching a couple of series, I can count the number of times I’ve launched the app. Same for Netflix. I finally canceled the latter, but Disney got me on the hook for an annual subscription. The crazy thing is that even after paying $160, I am no more dedicated to watching its content now than I was before. The service will terminate in December, but had I been more diligent about staying on top of that autopay, I could have put $160 toward that MacBook Pro I experimented.
What Are the Exceptions?
There are a few regular expenses I trust enough to put on autopilot. It’s not that I trust these companies implicitly, but one inaccurate charge and we’re going to the mat:
- Xfinity Mobile
- Xfinity Internet
- Sirius XM
- Aira
- Amazon Web Services
With the exception of the Xfinity Internet, which gets billed to my Ink Business Cash, everything else goes to my Bilt Mastercard. So far, this arrangement has worked out well. To be fair, the Bilt card only gets those expenses because of the five minimum charges required to earn points on rent. Here’s my review of the Bilt Mastercard if you missed the memo. Seriously, if you’re not earning points on your monthly rent, you need to get on it.
Note those links are affiliate links, which kicks back a few cents to me at no extra charge to you.
Keeping in Touch with My Financial Reality
In the end, I choose not to automate most of my bills, because I don’t want to create a false sense of financial stability. There is a certain peace in a set and forget mentality, but for me, combing through statements helps me better understand my spending patterns and more quickly identify my financial weaknesses.
What about you? Are there other expenses you choose not to autopay, or do you think I’m full of bologna for not auto paying across the board?
