Near the top of my list of things that I will never pay for is late fees. OK…I am not including library late fees in this category. I will pay the occasional quarter so I can finish a book.
Itdoes not make sense to meto have to pay additional money because I forgot or because I was disorganized.
With the amount of mail and e-mail we all have coming our way, it could be easy to misplace a bill. With a packed calendar, it could be easy to have bill paying be pushed to the side. Setting up a bill paying system that works for you can eliminate forgotten bills and late payments.
One single system will not work for everyone. I will share my quick and simple system and then give you a few suggestions in figuring out the flow that works for you. I hope this helps you figure out how to organize your bills. There will even be a few free Bill Organization printables to help you organize your bill paying life!
When a bill enters our home, I immediately do one of two things with it.
I open the bill, go online topay it, and then file the bill. If it is an automatic payment, I just record and file. It just takes a few minutes and it’s done. Touching the bill once is quick and efficient. There is no chance of missing the payment if I paid the bill the minute I received it! If you have a paperless home, you would have to add scanning the bill in as your last step.
If I decide not to pay the bill right then and there, I do not just throw the bill in a pile on the kitchen table. I fear that I would miss the due date or lose the bill if I did not have a specific place for all bills. I simply check the due date on the bill, write a note in my planner (find the best planner for you here) a few days before thedue date and then place on my desk in the “To Pay” file. As the due date approaches, I see on my calendar that I have a bill due and pay it when I have the time.
How to organize your bills.
Here are a few tips to remember when making sure you pay your bills on time.
Have one designated area for all the “To Pay” bills – an accordion file, folder, 3-ring binder.
Don’t be afraid to play around with your payment dates. We had our mortgage and our credit card payment due around the same day each month. I called to have our credit card payment date switched so we now have our two largest payments evenly spread throughout the month. Or maybe you prefer to have your bills all due around the same time of the month for ease. Note that you will not be able to do this for all your bills, but it doesn’t hurt to ask.
If you have multiple credit card payments to keep track of, consider simplifying and cut back on the number of credit cards you use. If you have different credit cards due to the various reward programs, but have trouble keeping track of paying your bills on time, then you need to rethink the number of credit cards you have. A late fee could quickly wipe out any rewards earned.
Communicate! If bill paying is not a shared responsibility, keep the non-bill paying member in the loop.While I am responsible for paying the bills in our home (because I enjoy it!), my husbandand I sit down and I go through our finances regularly so he knows what is going onandhe could take over the bill paying if necessary.
Have a system to keep track of automatic payments. (Printables below!) Do you live by a home organization binder and want to pull bill paying into your organizational system? I have created a few free printables for you to use. (I originally created the printables August of 2015, but finally updated them in November 2019! They were pretty outdated.)
Bill Payment Checklist
Pre-Authorized Payment Record
My system is quick and simple. It works for me.How do you keep your bills organized and paid on time?
Simple printables can be very helpful when trying to get your budget and financial life in order. If you need more help with your budget, family finances, spending and saving money, debt and all that, check out the Budget Boot Camp from Jordan of Fun Cheap or Free.
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The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
File folders or paper trays work well to arrange important physical documents into easy categories, such as “to pay,” “to shred,” “deal with ASAP,” or “send out.” You should also have a shredder in the space to properly get rid of confidential or private documents, a scanner to digitize files that take up too much ...
Mint is the free money manager and financial tracker budgeting app that brings together all of your finances. Plan ahead! From account balances and budget planners to tracking expenses and debt payments, all your money management is now in one place.
50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).
Add bills to your three-ring binder as they arrive. Save at least one envelope from each bill and place it in the back pocket of your binder in the event you ever need the address of the sender, if the address is not on the bill. Add tabs directly to the any bills you will need to find multiple times in the future.
Monthly expenses list. According to the same 2022 BLS study, the average American's monthly expenses are $6,080, which is about 77% of the average monthly income before taxes. This list of expenses covers everything from housing, health insurance and food to entertainment, personal care products and books.
Mint is the free money manager and financial tracker budgeting app that brings together all of your finances. Plan ahead! From account balances and budget planners to tracking expenses and debt payments, all your money management is now in one place.
Introduction: My name is Merrill Bechtelar CPA, I am a clean, agreeable, glorious, magnificent, witty, enchanting, comfortable person who loves writing and wants to share my knowledge and understanding with you.
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