Dave Ramsey says: Budget-billing for utilities is smart planning

Dear Dave,

I’m just starting my debt-free journey and trying to lay out a budget.

What are your thoughts on budget billing for utilities?

— Ryan

Dear Ryan,

I think it’s wonderful!

There’s absolutely nothing wrong with it at all. For a lot of folks, especially those in your situation, it helps smooth out utility payments and make them a little more manageable.

In most budget billing scenarios, they add up your utility bill for the last 12 months and divide that total by 12 to determine a fixed billing amount for the next twelve months.

It can make things so much easier when you’re first starting to live on a budget, and you don’t have a lot of wiggle room where your finances are concerned.

I’m glad you’re taking steps to get control of your money, Ryan. You can do this!

— Dave

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