Paying the bills is one of those necessary, recurring tasks that too often feel more stressful than it must. Life gets busy, and with so many responsibilities tugging at us in every direction, it is pretty easy to let bill payments fall between the cracks.
Paying bills on time is important for good credit and to avoid paying late penalties.
If you pay them, you can stay out of trouble as you will always be organized with your finances. As it is, a few simple strategies can put you in control of your bills and erase the dreaded word from your financial vocabulary.
Here’s how to make sure all your bills get paid on time, every time—and do it without the stress.
Automatic payments
Automatic payments are probably the easiest way to ensure one never misses a payment.
Most banks and vendors are now willing to directly link to clear your bank account or credit card by the due date; they schedule the payment on the due date so you do not have to make the payment manually.
With auto-pay, you will never miss a payment because you are too busy, traveling, or just plain forget.
However, you must ensure that you have adequate funds in the account to cover the auto-debits; otherwise, you might incur overdraft fees. If you’re worried about this, setting up another account exclusively to pay your bills could help manage your funds more effectively.
Bill Payment Apps
Bill payment apps have become the most reliable and convenient payment method. They remind you of upcoming due dates to help you plan and ensure you don’t miss another bill.
Also, a bill payment app will help you see exactly how much money is coming in and going out every month. You can schedule money for bills in advance, which smoothens the process and makes it stress-free when the time comes to make the respective payments.
Create a Bill Payment Calendar
If you are a hands-on type of person, you may want to create a bill-paying calendar. This is a system where you can see everything in one place—on a real planner or your digital calendar, such as Google Calendar.
First, list all your recurring bills.
These may include rent, utilities, credit cards, phone bills, subscriptions, and insurance payments. Put their due dates on the calendar. Also, note the few days preceding the due date so that an appropriate arrangement for the bill payment can be made in time.
This approach is effective, especially if you have more than one bill with different due dates across the month. Having everything laid out in a calendar allows you to plan your payments promptly and properly.
Consolidate Your Payments
It’s easy to lose track of bills when they are located in different accounts with different due dates.
You might want to simplify your finances by consolidating your payments. Let’s say you have numerous credit cards; you can transfer balances to just one card at a lower interest rate.
This would lessen the number of payments you would have to track and send out every month.
You can also check if all of your current service providers would allow you to change your bill due dates to fit in better with your pay schedule. For example, you could have all bills due either at the beginning or the middle of the month, making it simple to handle payments all at once.
All of this being part of consolidation and alignment of due dates means less likelihood of missing a payment out of confusion or disorganization.
Always Keep a Separate Folder for the Bills
Be it physical or digital, maintaining the bills is crucial. If you prefer paper bills, design a folder or a binder where all the arriving bills can be found. Arrange them by the dues date, and frequently check the folder to ensure you do not miss anything.
Create a subfolder in your email or document storage software if you receive digital bills.
When a bill arrives in your inbox, move it to this subfolder, so you can retrieve it when it is time to pay your bills. An alternative is to flag or star important emails. This way they are always at the top.
Staying organized is a key part of managing your bills. A dedicated folder keeps you from losing any of the pieces in the shuffle and ensures that you are always ready to pay on time.
Use Bill Reminders
Even with all of the good intentions, life can get crazy, and bills can slip through the cracks. That is where reminders come into their own. You can use an already-existing reminder app on your smartphone or set up reminders via your bank or service providers.
Schedule reminders a few days before each of your bills are due, with enough flexibility for you to arrange payments. If you prefer text reminders, most banks and utilities offer that service and will send you alerts when your bill is coming up.
Pay Bills right away
Another approach is paying bills immediately without unnecessary. If you can afford it in your budget, don’t wait until the due date; pay early. This way, the risk of forgetting vanishes and injects the feeling of being in control of your finances.
Consider paying bills on payday. Paying bills early might also relieve some stress and worry if you know they’re completed before their due date sneaks up on you.
Have an Emergency Fund
Unexpected expenses put off the ability to divert expenses on time payments—an emergency fund prevents this. As such, it acts as a financial safety net whenever unexpected financial difficulties, such as health problems or repair needs, arise.
By saving at least some amount in your emergency fund, you’ll have a slightly larger financial cushion to use during any of the trying moments in life, ensuring that you’re keeping up on the important bills every month.
Conclusion
Paying bills on time need not be a pain in your neck. With a few easy tricks at your side, from auto-paying bills to keeping a bill calendar and being organized, you can master the task of keeping up with your expenses.
It will ensure you avoid late fees and maintain a good credit score, but it also gives you much more peace of mind when dealing with your money.