Everyone has bills, and the day of their arrival can be a time of dread. But those monthly payments don’t have to be stressful, especially if you’ve spent time planning when you will pay them.
It’s easy to get carried away with what you might owe. But if you are still determining how much your upcoming bills will be for the next few months, you might pay more than you have to. Or worse – in some cases, you may have an outstanding bill that goes from the due date to the next date without being paid and gets locked in collections before you realize it. Sometimes bills can be overwhelming, and staying on top becomes difficult. Here are some tips to help you to organize your bills better and pay them on time.
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1. Create a Spreadsheet for Your Budget
A spreadsheet refers to rows and columns, a great way to track financial obligations. Input your latest bills, how much you paid, and when they are due. The use of color-coding can also help identify debts that may need paying earlier than the others.
In addition, you can break down your monthly budget into categories. For instance, create one column for monthly recurring expenses such as rent, utilities, and insurance payments. Then you can create another column for monthly fees needed immediately and one for those required in three months or longer. The purpose of creating categories is to see what is coming up at a glance.
2. Use an Online Bill Payment System
If you are looking for ways to organize your bills, consider doing so online. Using a system that connects to your financial accounts, you’ll be able to track all of the payments you make in one place. This will give you a more accurate picture of what is coming in and going out each month and year. It also allows you to set reminders for when payments are due so that there are no surprises when they arrive in the mail or inbox just before they are due.
Setting up an online bill pay platform can be simple to help you maximize your budget and keep track of your expenses. It comes in many forms, but some are free, and they are worth exploring. See what options are available, and select the one that best meets your needs.
3. Budgeting Journal
Another way to better organize your upcoming bills and your budget is to create an ongoing log. Write down each of the bills you will be paying each month, how much those bills are costing you, and the date you will start making payments.
Creating your budget journal is a good idea for those with discipline issues when paying their bills. It will help to keep you on top of your obligations and remind you what bills need to be paid before others do. Keeping this log will also help you plan so that when your bills come in, there is no nasty surprise waiting for you.
4. Consult Your Budget
Be aware of any upcoming changes in your budget. Consult your budget when you get a raise or a new job with better pay. Consider increasing your contributions to retirement accounts and other savings, and you may want to put some money into savings for car repairs on the way. But if you don’t refer back to your budget from time to time, you can easily spend more on non-recurring expenses.
In addition, be aware of the upcoming bills you could use to help reduce spending. You may have overdue utilities, a new vehicle, or a mortgage payment. With a budget, you may find it cheaper to pay them in smaller chunks rather than one large bill all at once.
5. Pay Bills Early
Another way to help organize your upcoming bills is to pay them ahead of time. If your accounts are due on the 10th of each month, you can start making payments on the 3rd. That way, when the date arrives, you’ll be ready if you forget. If you do so for your bills, you’ll always be aware of the situation and can avoid unexpected penalties.
Using these tips, you can better organize your upcoming bills so that they become a less stressful part of life. That way, you’ll avoid late fees and penalties, saving you some extra money in the long run.
