Use This Simple Strategy To Help You Pay Your Bills Every Month With No Stress (+ Free Bill Tracker)
Bills, bills, bills...
Adulthood would be so much more fun without them, right? But unfortunately, it’s reality we live in and bills will never disappear (+ probably multiply...)
I know paying them can be a little bit painful, especially when some of them are clumped together on certain days, like the first of the month or something. But what if I said there’s a way to make paying them easier?
Before you get your hopes up, I can’t tell you ways to decrease specific bills or increase your income. That’s not what I mean by easier, although that would be nice.
What I do mean is there is a very simple strategy to making sure your bills get paid every month, on time, and with no shock factor.
You will still have money left over to spend each week and to save at the end of the month.
You just have to make sure of one thing right away.
Does your income exceed the amount you owe each month?
This means taking out a pen and paper and writing out every single expense you have. If you don’t know the amounts exactly, then you can estimate based on previous months. Look at them, evaluate them, and compare to your take-home income. Are you in the green, or red?
If you can answer “green”, then move down to where it says “Follow these steps”.
If your answer is “red”, then ask yourself: Which expenses are necessary and which are luxury? For example, your rent is necessary but do you have a gym membership? A paid subscription anywhere? Cable, when all you watch is Netflix anyway? Decide what is important to you and what you can live without.
Once you know that, you can cut those luxury expenses out, such as ending your gym membership and working out from home. This will save you that extra $20-30 a month to be dispersed elsewhere. Do that a few more times, and you could have into hundreds.
And better yet, do that as many times as you need until you’re in the green. Once you are…
Follow these steps to ensure your bills get paid every month + without any added stress:
Step 1: Calculate all your expenses
The good thing is, you’ve already done this step!
Step 2: Compare to your income
You’ve done this, too, but this time, take your total from step 1 (all your expenses added up) and divide it by the number of times you’re paid each month.
For example, let’s say you owe $2,000 in bills each month, and you know you get paid every week. Then you would calculate $2,000 divided by 4 paychecks = $500.. So go ahead and calculate yours. Got your total? Great! You'll need it in the next step.
Step 3: Save that amount every single paycheck
Yep! Every single pay check, you have to put aside $500 (from my example...put aside whatever your amount is) to cover your bills and expenses. Anything left over can be split between savings and spending or however you want to divvy it up.
That way, you will always have enough to pay your bills, and you will always be prepared for them, too.
You will never have to give up your whole paycheck to bills and wait anxiously to be paid again. This strategy avoids that.
And even better yet, this works for married couples, too.
My husband and I added up all our expenses and divided them by 6 paychecks (his 4 and my 2), and each week, we transfer exactly $516 to our shared checking account. This ensures that regardless of where we are in the month or how many bills overlap, we are on top of them.
We leave the money in our shared account, which is there only to pay our bills. Amounts in our personal accounts are for entertainment, savings and rainy days.
I also recommend:
Keeping an organized list of your bills either on paper or in a digital calendar. This way, you can see what you owe, when, and to who. It’s also a good way to keep an internal reminder and also to cross it off, knowing it’s paid and can forgotten about.