There are a lot of reasons that people end up dealing with poor financial circumstances. However, at the top of the list is the inability to manage your expenses properly. Bills are a part of life that aren’t going away anytime soon. There will always be something to pay for and being responsible is how to stay out of trouble. However, when you mismanage your bills by forgetting to open them and missing due dates, you put yourself in a position to struggle for months or even years to come. If bill management is something you’ve been neglecting, these tips will help you get things in order.
Have a Backup Plan
Even with an organized budget, there are times when you may need a helping hand. An increase in your utility bills, a missed deadline, or even a financial emergency could cause you to fall behind. Having a backup plan is a great way to ensure that your bills are paid no matter what. It is best to have emergency savings account for circumstances like these. An emergency saving is simply a stash bank account in which you can turn to in the event of a financial emergency.
If you don’t have an emergency saving yet there are other quick solutions like online installment loans which are essentially an alternative to payday loans online. You can receive a quick deposit within one business day to your checking account for as much as $1200. All you need is to be 18 years of age, meet minimum income requirements and have a checking account in good standing. If you do take this route, however, be sure to add your installment payments to your list of bills so you won’t fall behind.
Gather All Your Bills and Make a List
If you’re going to create a budget for your bills and ensure that they’re paid on time, you first need to know exactly what needs to be paid every month. Gather all of your bills so that you can create a list. Remember to include bills that are electronically sent to you and those that may only be sent quarterly. List each service provider, the service you’re paying for, the amount due each month, and when each bill is due.
Subtract From Your Monthly Income
Once you have a total of your monthly bills you’ll need to make sure that you have funds in the budget to cover everything. Subtract the total amount due every month for your bills from how much you make in a month. Keep in mind that you’ll still need to factor in other expenses like groceries, gas, clothing, medical costs, entertainment, and more.
If your income is less than your monthly bills and additional expenses, you should create a list of expenses in order of importance and start removing bills that you can really live without. For example, your mortgage payment is more important than cable so if you can’t afford the cable bill you may need to look for alternative ways to watch tv.
One of the most difficult things about paying bills, believe it or not, is remembering when they’re due. Since not all bills align with your pay schedule or fall on a convenient date it can be easy to fall behind. This, however, leads to late fees which doesn’t help your issue. Set reminders to let you know when bills are due. You can use budgeting apps to help with this, write them out on a calendar and post it in a neutral location, or set reminders through a digital calendar.
These small yet vital steps can help you to get more organized with your bills. By being fully aware of what you’re responsible for, living within your means (comparing bills and expenses to your income), and setting reminders for timely payments you should be able to tackle all of your household bills.