Make the Task of Paying Bills Easier
Paying bills on time is often a struggle. Since 2020, 28% of us have reported difficulty with paying bills. It seems these days every company has its own log-ins, apps, and profiles. Even if we use our bank’s bill pay system, it can be hard to keep up.
There’s support out there. Plus, there are a number of steps you can take to reduce your anxiety around paying the bills on time (and get into a good routine again).
To help with paying your bills, you can:
Consolidate them to pay everything in one go
Utilize autopay features so that you don’t need to rely on remembering
Work with a calendar system so you stay on top of what’s leaving your account
Download some useful apps which will help you
Consolidate Bills
Bill (or debt) consolidation means combining two or more (potentially, all) of your current bills into one payment. Essentially you are hiring a company to refinance all of your debts (they pay off your debts) and then you owe the new company one larger payment. Debt Consolidation has its place but often is seen as a negative option because interest rates can be high and you could take longer to pay off bills.
On the other hand if we are talking about consolidation of bills at one company, more often than not, a company is happy to help you implement this sensible financial strategy.
Is it always possible to consolidate multiple bills into one single charge? No, unfortunately not. However, where you are paying the same company for multiple bills (such as an insurance company where you hold life and motor insurance, for example), you should be able to access this kind of help.
AutoPay
Automating your bill paying can mean setting up direct debits for each of the regular payments due every month. These are often subscriptions or installments- so the actual numerical amount doesn’t vary much from month to month such as cell phone bills, insurance, and car payments.
When you set up direct debits, the money will leave your account automatically on the same day every time. It means that you can get prepared in advance, since you have the plans set in place long before payment is due. Plus, it’s not something you have to remind yourself about on a regular basis- your bills are paid automatically.
However, if you set up auto pay for bills such as utilities that can increase significantly during some months, you will want to have that cushion in your account available to cover higher bills.
Separate Bills Bank Account
Opening a separate checking account just for your bills could be helpful. It separates the cash from your other budget categories, helping you to avoid spending it.
When you open a bills-specific account, you can attach all of your direct debits, utilities and other bills to it. So whether all the money leaves your account in one go, or you have them set up to charge throughout the month, it’s easy to keep track.
To make the most of your separate bank account, total up all the bills you expect to pay this month. Remember mortgage or rent payments, electricity or gas bills and any other direct debits, like Netflix. Then, simply transfer this amount into your checking account as soon as you’re paid! This way, you’ll remove the temptation to spend your hard earned dollars and ensure that you have enough to pay all your bills on time, every time.
Use a Calendar
For some of us, having a visual representation of each bill payment can be useful. Putting your bills on the calendar serves as a physical reminder and they can be color-coded, highlighted, and beautified. This means we are more likely to remember them and be intentional about payments.
When you know the due date of a bill, add it to your calendar. You can also color it into a specific category. For example, your car insurance, car note payment and installments for repairs may come under automobile-related payments. Then, check the calendar on the same day every week to find out what bills are due.
Software to Help
It’s just so easy to forget about bills or put them to the back of your mind. Luckily, we don’t have to solely rely on ourselves in order to manage them! There are several really good bill-paying apps and technologies out there that can help you.
Bill.com is ideal for freelancers or entrepreneurs who need help with their invoices and payments. It combines both your income and outgoings with its smart technology and works with businesses in mind. Bill.com calls itself an “intelligent” platform since it utilizes AI technology in order to make the process as efficient as possible.
The other really popular software is Prism, which was created with personal bills in mind. The company prides itself on putting all your important bills in one place (its online calendar), integrating with your banking and even scheduling your future bill payments.
We aren’t endorsing or promoting any specific app, but we would love your feedback if you try one out!
Bill payments can be hard to keep up with at the best of times. But perhaps you need a reorganization of your budget in order to prioritize your payments? To learn more about managing your finances, schedule a call with me.