Okay, here is the situation and what may or could happen regarding the USPS, your mail, and paying bills on time. As many of you have noticed, USPS rates have gone up and extended delivery times, and in many instances, they were extended by dates that may affect your finances and how you want to consider paying future bills. Here are some steps you need to consider for 2022, start the year off on the solid ground, and keep yourself out of trouble.
USPS
By now, you should have noticed that on August 29, 2021, the rate for a first-class USPS letter went up to $0.58 for a standard letter. Let’s look at this from the perspective of the “adult” portion of my life. I graduated high school in 1990, and a first-class letter cost $0.25. That is approximately 132% in just 32 years or a 4.13% annual increase. By comparison, the average inflation rate for the previous 30 years was only 2.38%. For more on the 30-year inflation average, visit https://ycharts.com/indicators/30year_breakeven_inflation_rate.
Okay, we have now established that the cost of first-class postage has outpaced inflation for the last 30 years. We are paying significantly more to mail letters, and surely the service is better now, considering advances in technology and transportation. Thirty years ago, it was expected that a first-class letter would take 1-3 days to be delivered. So what about today? According to the USPS website, a first-class letter is expected to take between 1-5 business days. Not exactly what I call a positive correlation between price increase and the quality of services received. To see what the USPS says on first-class postage, visit https://www.usps.com/ship/first-class-mail.htm.
Electronic billing, an alternative
So, by now, you may be asking what this has to do with me and paying my monthly bills? It is simple if the mail takes up to two days longer to reach you and then up to two days longer to be returned, it may end up causing you to incur late fees if the payment is received late. And this situation can be avoided rather easily by setting up electronic billing statements and paying electronically. This can ultimately reduce your billing payment cycle by 2-10 days, and it is a safer method of dealing with these bills.
You ensure that your statement will arrive timely, and you also ensure that your payment does as well. To do this, all you need to do is contact your creditor or the company that is sending you monthly bills and request an electronic one and not a paper copy. Yes, some companies may not offer this, but today, most do. Then you can do one of two simple methods to pay these bills. In many instances, you can go to that company’s website and sign up for electronic billing and payment at the same time. This will allow you to receive an email of the bill, and then all you need to do is go to that company’s site and link a traditional checking or savings account to pay the bill. And that is it! And today, many financial institutions off free or low-cost bill payment services that you may also consider. Though this method will take a day or two to process, paying on the company’s site is generally posted the same day.
Safety
And a second reason to consider electronic bills and payments is the safety and prevention of theft, both of your accounts, money, and identity. And for those who are old school or worry that the Internet is not safe or secure, it is safer than the USPS these days. Not only do you ensure your bills are received and paid timely, these companies spend a significant amount on security to protect both themselves and you from theft of data. They are not 100% perfect but consider how many things can go wrong when you send and receive physical mail.
To protect yourself against identity theft, feel free to search previous posts. And if you require financial assistance or financial planning advice, feel free to contact me directly if you live in or around the metro Nashville, Tennesse area. Yes, I can also assist you no matter where you are in the US but always seek out a qualified fee-only Registered Financial Consultant who is also a fiduciary.
