Are you tired of seeing those late charges on your credit card statement or other monthly statement? Why not review your bill paying system to help you avoid those unsightly late fees. Establishing a good billing system will not only help you avoid paying those late fees it will also help you simplify your personal finances.
Here are five steps to help you simplify your bill paying system which will eliminate those late fees and help you develop a simple personal financial lifestyle:
Keep bills in one location – When you check your mail immediately sort the mail to separate your bills from your other mail. Then place your bills in one central location. You want to place your bills in one location so you do not miss place your bills and spend unnecessary time looking for them when it is time to pay them. You may want to place them in a desk draw, file cabinet, or separate file folder. Some place where you will not forget about them.
Select a bill paying day – Choose a specific day per week or day every other week to pay all of your bills. You decide what works best for you. You probably will want to pay all of your bills close to your payday. By selecting a day you have committed yourself to get this done, it will help you not forget about your bills because they are all in one place so you know what you need to pay. By paying once or twice per month you will not have to keep checking to see if you have money in your account for each bill because you paying the bills all at one time. You may want to consider changing the date when the bill is due so its close to the time when you plan to pay your bills. You want to make your bill paying process as convenient as possible for you.
Record your payment – Recording your payment in your checkbook will help you keep accurate records of you account balances so you can avoid overdrawing your account. It also helps you remember if the bill was if you keep a copy of bill or bill stub with date that the bill was paid. You should do this when you pay the bill because if you don’t you may forget when you paid the bill and how much the check was written for.
File payment – Once your bills have been paid and recorded in your check register. You should file your bills in their respective files for future reference. You want to have a file for each bill that you pay so you can retrieve it quickly if needed and you do not have to sort through several other bills to find the specific bills your looking for.
Use financial management software – You should use financial management to help with your bill pay process. Financial software you can easily set up reminders when a bill is coming due especially for those bills you pay semi-annually or just annually so you can remember to pay them. It also enables you to track your spending and help you create a budget. Financial software will help streamline the manual bill paying process.
These five steps will help you save time, money, and reduce stress when it comes time to pay your bills because you will be better organized. So take action by reviewing your current bill paying system and begin to implement these steps to help you simplify your personal finances.
How do you simplify your billing process?