Another bonus issue this weekend. We had a lot of requests that we wanted to make sure got published in timely manner. In this issue we have tips about paying bills on time.
When you subscribe to my newsletter "The Budget Stretcher" you
will receive this easy guide to effectively organizing and
managing your money absolutely free. Get all of the Budget Forms
and Worksheets you need to make it work for you. Click the below
link to learn more:
Tips and ideas to help you pay your bills on time.
Write The Date and Time Due on the Envelope
When I receive bills or any correspondence that has to be mailed at a certain time, I save time and aggravation by writing the date due to be mailed where the stamp goes. Only takes a second to let me know it is time to mail something.
By Linda
Online Bill Paying
Use an online bill paying service. As soon as your bill comes in the mail, schedule the payment. If it is a recurring bill, many services will let you schedule it to be paid automatically each month so that you don't have to enter it each time.
We really got into hot water by not paying our bills on time. We were close to losing our house. We went to a certified nonprofit credit counselor and we are doing much better. We have been with them for a year. They charge a fee for their service, but we save that much money in interest fees. They negotiated lower interest rates with some of our creditors. We will be out of debt in less than two years.
I mention this only because some of the people who visit this site are coming because they are in the same situation.
If you go to a credit counselor, make sure they are certified and non-profit. Also make sure that they are not trying to get you to sign another loan on your house. Some outfits are simply mortgage companies. The people we work with (GreenPath) are certified, nonprofit and they are also certified HUD counselors. All of this makes it easier to deal with the creditors. The phone calls have stopped. We shop at Aldi's for food and we shop at Thrift stores for over half of our clothing (I rarely find clothes for my tall son at thrift shops, the best I can do is clearance at landsend.com and oldnavy.com. I can never find his size at brick and mortar stores.)
Keep all your bills in one place. Take them there straight from the mailbox to avoid misplacing one.
Rule #2:
Select one day of the week (or every other week) for paying bills. Sometimes time gets away from me and I realize I haven't paid bills in a while and there is something due tomorrow. If I pay bills every Thursday, I am unlikely to miss it. Then on that day I pay everything that is due within the next 10 days so I don't have to worry about them again until the next week. That gives enough time for them to get through the mail. This goes for online bill pay services as well because sometimes it takes up to 5 days for them to process it and mail it to the company being paid.
Rule #3:
Keep a list of the bills that don't have a reminder coming every month, like rent or bills with a payment book. Better yet, keep a list of all bills you have due every month with the approximate date of the month they are due. Example:
1st of month House payment
10th of the month insurance payment
This really helps keep track of auto debits because it is easy to screw up your balance if you forget that an auto debit posted. Also, when you pay regularly and get into a rhythm like this it becomes easier to know how much money you are going to need later in the month so you know when to quit spending.
Purchase cheap yearly pocket calendar or better yet, get one from a vendor with advertising on it for free. Each month has a margin, write mortgage or rent, car payment, water, phone, electric, standard monthly bills. As soon as bill comes in, record the amount. When paid, check it off list. List credit cards and balances, add insurance payments to list on months due. I keep one in my desk at work.
It took me several years, but I finally figured out how to manage my families finances so we never worry about the bills.
First, I used a windfall (could be a tax refund, holiday gift, inheritance, bonus, etc.) to get a month ahead of my bills. This means any money received in January is for February living expenses. Don't use direct deposit unless it goes directly to a savings account. You are likely to use it before you mean to if you put it in your checking account. Otherwise just hang onto those checks until about 4 days before the first of the month. Then deposit the checks or transfer from savings into your checking.
When you make your deposit, get cash back for regular items such as gasoline, allowance for kids or the working person, groceries, and money for things like a night out, movie rental, haircut, etc. We call those incidental expenses. Put the cash into a coupon holder - one slot for groceries for the month, incidentals, gasoline, etc. That's all you should spend for the month on those items.
Write any checks for bills due the first of the month. Then whenever a bill comes in, pay it right away. Part of my going through the mail is writing checks for bills received and getting them ready to go out in the next day's mail.
When you are at the bank (I only go once a month to do all this), transfer into another checking account money used for bills that aren't monthly, like car insurance that you only pay twice a year, or property tax, home insurance and auto registration paid only once a year. Each month you put only a month's portion of the total bill for each item into that second checking. Then when the bill comes, the money is there because you have been saving for it bit by bit all year. You don't have to take it out of savings. You can do the same thing for clothing, school supplies and outings, gardening, home and car maintenance, whatever your categories are.
This way everything that's left STAYS in savings. The bills are always paid right away and there's money earmarked for the big non-monthly bills and other living expenses. You can make it a habit to never go into your savings account to pay bills by using this system.
The next windfall you get after starting this should go directly into savings. You'll soon find you have a good back-up in case of job loss or emergency expense.
Snail mail bill paying may not reach the company on time and they may assess you a late fee. Paying online, you set up a debit account with the company, so only the last numbers of your checking account show when you pay. And you have an instant record that your payment has been received on time and save on postage too!
Sometimes due dates on bills don't align with my paydays. If this happens, I simply call the company and ask if I can change when my account comes due. For example, payday is the 1st and 15th, so I ask for a due date of 8th or 22nd. This gives the mail plenty of time to get there. Most companies, especially credit card companies don't mind at all. This saves a lot of money on late fees and improves my credit rating.
I just acquired a new Frigidaire front-load washer. I use homemade laundry detergent (Fels-Naptha, washing soda, Ivory and Borax). These new washers need low suds soap and homemade is. But is it still OK for my front-loader? I'd hate to stop making it and have to pay big money for the recommended Tide HE. Thanks!
Does anyone know how to dehydrate fruit (especially plums to make prunes) without a dehydrator? We are dry here until mid-october at least! Is there another way for jerky, too?
I am throwing my son a train theme birthday party for his 3rd birthday in October. We are on a very limited income so I would like to do as much as I can myself. Any ideas would be appreciated as i am clueless! Thanks in advance!
I stored a purse in a closet in Florida, the following year when I brought it out to use and leather strap feels tacky, sticky. I've tried rubbing alcohol and white vinegar, no change. Any suggestions?
I've been in my home for almost two years. The house is about 13 years old. But there is a unpleasant odor when I open my kitchen cabinets. I have the same type of cabinets in my bathrooms, but they don't smell. Just the ones in the kitchen at the bottom and top, close to the sink area. How do I get rid of this odor?
Request: I have an opportunity to get a Russell Hobbs Mini Food Processor. is it worth it? Does it do more than just nuts and carrots? I have a mini chopper I bought at home depot and the bowl is cracked and on its last leg.
I am wondering if anyone has a house cleaning schedule they would like to share with me. I have tried making my own before, and it just didn't work. I would like a day by day schedule. I have found that on a schedule I get more done rather than just saying "I will clean all day today". If you know of a website with ideas, or if you would rather share your own ideas, I would greatly appreciate it. THANK YOU!
I have a red leather couch and find there is a lot of deep down grim when I wipe it with baby wipes. I would like to find something to clean it without taking off the red dye in the couch.
You've heard it before. "You always have to pay your bills on
time or it will hurt your credit rating". The fact is that not
paying your bills on time can also cost you a bunch of money.
How can you decide how much you have for bills and expenses when your paycheck varies from one payday to the next? That's a question a lot of people struggle with.
Be the first to post feedback! Click here to post feedback.
Post Feedback:
Login using the form on the top of the page to post feedback (if you are a registered user). If you have not yet registered, click here to do so. It's FREE!.
