There are countless ways to handle personal finances, everyone does it just a little different. Methods range from tracking every expenditure in an elaborate spreadsheet and having all bill payments automated, to others who still write physical checks and mail them in using the good old United States Post Office. Still others struggle to manage their finances. I used to be one of those people. They know they need to do something, but they don’t know how to start.
One of the most important steps in successfully managing your finances is to make sure your bills get paid, and on time. One way to do this is create a monthly payment timeline.
Step 1: Create A List Of All Monthly Payments
Write on a sheet of paper, or even better in a word processing document, every recurring monthly payment you have, what day it’s due, and how much the payment is. Some of these payments are constant, such as mortgage, auto loan, or insurance payments. Others, such as utility bills, may be variable. Leave these amounts blank for now.
Step 2: Rewrite The List in Order Due
Next, rearrange your list so the recurring expenses are in order by date of when they’re due. This is your monthly expenses template.
Step 3: Create Monthly Worksheet
At the beginning of the month, copy the template into a new document or piece of paper. If you have blank amounts for variable bills, fill in the amounts as you receive the monthly bill.
Step 4: Review The Worksheet Often
Each time you receive a paycheck, review the worksheet for bills due from that date until the next payday and make the appropriate payments. Put a check mark next to an expense when you make the payment to show that it is complete.
Step 5: Repeat Each and Every Month
Create a new worksheet and follow this process each and every month. You will eventually get into a rhythm and it will be come second nature.
If you’re having trouble figuring out how to manage your finances, creating a monthly payment worksheet is great place to start. It will help you at least be aware of when your bills are due, pay them on time and avoid late fees and falling further behind.
How about you, Clever Friends, how do you remember to pay your recurring monthly bills?
Brought to you courtesy of Brock