When life gets hectic, it is hard to keep track of those bills, credit card payments, utilities, license renewals, account updates, etc. The result of not keeping track, however, is having to pay even more in charges, fees and penalties.
That is why getting organised and having a plan in place should keep you on track help you avoid these extra charges. Luckily, we are at the time and age of online reminders, alerts, calendars, auto payments, which all can help you minimise the work needed to get your payments done.
But even with these, unless you know what is being paid in which manner, you still might miss some payments or ignore an alert if you’re not organised. Here are a few tips that can help you keep tabs on your bills and your finances.
Create a spreadsheet
OK. It is totally understandable that not everyone is comfortable working with a spreadsheet. In fact, some people might just get discouraged just at the mention of Excel. Although a spreadsheet could be ideal for updating, sorting, calculating, etc, use whatever you’re comfortable with — a table in a Word document or even a notepad.
Create a table that lists all your monthly payments — rent, car lease, each of the utility bills, etc. Write how each is getting paid and when. For example: rent; check; amount; due on the 1st. Electricity bill; auto pay; amount (to be updated); due on the 15th. Credit card payment; manual; amount (to be updated); due on the 22nd. Car insurance; auto pay; amount; due on the 25.
If you list all of your upcoming payments based on past payments and update them with new values, you will have a great visibility of what you should pay manually — or choose to switch to auto pay — and what will be charged to your account. This exercise also helps you get understand your cash flow — and make changes to it, if needed.
Streamline
You know how comfortable you’re with managing your finances online. If the only reason your bills are split between manual and auto pay is because your providers don’t offer an auto pay option, there is nothing you can do. But if you just didn’t get around to enrol in auto pay, take the time to do so. This will help you ensure that you don’t miss a payment.
One caveat, though: Make sure that you always have enough money in your account for those scheduled payments. Again, that is where your spreadsheet (or notes) about what is available when should come handy. Overdraft charges can be significant so keep an eye on upcoming payments.
Conversely, if you opt to manage all of these manually, try to assign dates for making these payments. These could be immediately after getting your paycheck or periodically for whatever coming up — like once a week on a particular day.
Paid
If someone else in your household is likely to pay bills, be sure you also assign who is paying what. In many cases, which trigger marital conflicts, one person assumes the other has taken care of a particular bill, which the other didn’t realise that was expected.
Clarifying who is responsible for paying bills and out of which bank account can help you keep track of your household spending as well. It also makes it easier for you to go back and track payments to see patterns of spending or to budget for future payments — both are essential with your financial planning.
If you still use paper statements and pay at physical locations, make sure that you at least market the statements as paid and log the payment. This way, you don’t have to sort through piles of papers to get a sense of your spending.
The writer, a former Gulf News Business Features Editor, is a Seattle-based editor.
Get organised to pay bills
Keep track of all your monthly payments
Enrol in auto pay or write down your payments
Know who is responsible to make the payments
Avoid overdrafts on your accounts
R.O.
