Paying bills is something that we never thought about as children when we wished to grow up. It goes along the line of dealing with taxes and cooking your own meals. The great part is that even though bills are a necessity for adult life, there are many ways that we can make this chore easier on ourselves.
Here are 7 ways to simplify bill paying within your home.
1. Make a Date with Your Bills
Whether you get paid weekly, biweekly or monthly, you need to have a set day and time that you will dedicate to paying your bills. Just like your significant other, bills deserve your undivided attention, but unlike your significant other, that time can be as little as 15 minutes. During this time, make sure you are in a quiet place where you can concentrate and won’t miss a bill payment.
Tip: Spend minimum time with maximum concentration on paying bills.
2. Automate It
In the world of technology, finances can easily be managed through an app, computer program, or simply through a note or two saved on your smartphone. Websites like mint.com are perfect for those of us that need to see our finances all in one place. These financial organizational tools make it easier to see which bills can be automated and the program reminds you when bills are due.
Lower bills, like debt payments around $100, can and should be automated. If a bill has been constant throughout the year, set up automated payments through your bank or credit union. For larger bills or bills that may have hidden fees or fluctuations (like cell phone and cable bills), I suggest getting your own eyes on that bill every month.
Tip: Set up automatic bill payment for bills that are less than $100.
3. Pay Everything Once
Yes, you can pay every bill at the same time, even if you are on a budget. While you have the option of automating small bills, you can also choose to pay them off once a year. Utility bills, membership fees, and insurance bills can all be paid on a yearly basis.
If you choose to go this route, make your payment when you get a bonus or extra money, like your tax refund. Be sure to ask if there are discounts for paying a bill up-front. Insurance companies often offer money back if you pay in advance, so take advantage.
Tip: Pay insurance and utility bills annually to save money.
4. Change Your Due Date
It is more difficult to stay on track with bill paying when your bills are due on different days during the month. The easiest way to remedy this is to call the companies and ask for your due dates to be changed. Try to switch them to days when you know you will have enough funds to pay the bills.
Tip: Pick 2 days each month and schedule your bills to be paid on those days.
5. Pay Yourself First
This is the most important bill that you pay each month. Why is this essential for the payment of all of your other bills? It gives you motivation to not only make more money, but to pay down bills and debt in order to pay yourself more. This bill should be paid first and put directly into a savings account, whether it’s for fun money or your emergency fund.
Tip: Designate money to be deposited into your savings account monthly.
What bill-paying system works for you?
6. Mark Your Bills as Paid
Just like paying yourself first works as a motivation, marking your bills as paid can cause you to keep your bill paying less stressful and as simple as possible. By marking these paid, whether it’s writing it in red marker on a paper bill or typing “paid” next to the bill on a computer program, you’ll ensure that you don’t pay a bill twice and that you are making progress in your efforts.
Tip: Use a red marker to write “PAID” on each bill.
7. Tailor Your Bill-Paying System
You can take all of the advice listed above, but you still have to tailored it to your own personality. Do you love lists? Are you into calendars? Do you do better when EVERYTHING is computer-based? Pick what you gravitate to and stick to it.
For our family, we are online and paper calendar people. We use Google calendar with alerts so that my husband and I both know when a bill is due. But we also use a paper calendar during our bill-paying “dates.” For us, it helps to see the date the bill is due and the paper bill, as well as on a computer screen.
Tip: Find a bill-paying system that works for you.
I love these tips! I set up a separate account (at a different bank) for my student loans. Then I had my paycheck divided and set up an automatic payment. Then, I never had to worry about how I was going to pay that bill because it was always money that was already accounted for … I managed to pay it off 3 years early by doing that!
I love that idea, Jessica! That auto-pilot aspect of bill paying really can help us reduce debt quickly. Congratulations on paying off that debt!
I also have a really good crdiet score ( 709) and from everything i have been told and seen the best way to keep increasing your crdiet score is to * Pay off Credit cards asap*Pay more then the MIN due* Do not close out accounts just dont use them* Dont get any more crdiet cards then needed* Do not have companys inquiring on your crdiet report ( if you have too many inquiries it drops your score i was told)Those are some key tips i was told to keep in mind, If you have several cards with low amounts on them you might be better off to transfer them all to one card and pay extra on it every month ALso if you hold a Providian Credit Card you can log on and see information pertaining to your crdiet report and it shows you monthly how your score is and gives you also ideas of ways to increase your score and lower debt
I guess, If Im real creative I can see where the last aewnsr is coming from, but you can have a great credit score with no debt.Because you have a credit card doesnt mean you have to constantly borrow on it.If you do not have credit, you will never own a home unless you pay cash .lets be realistic about that one.The best way to improve your score is to of course, pay your bills not only on time, but before the closing date.Secondly, keep your balance to limit ration as low as possible. The only time you really have to use a card is at least every 6 months, or else it will be closed due to lack of activity.Fill your tank every six months .thats a manageable amount if debt I would think