Wouldn’t things just be easier if everyone had an accountant to handle all the financial matters in his life? Some who are too busy and don’t have the time actually do. For those who can’t afford to keep an accountant on retainer, then you need to serve as your own accountant and learn how to manage your money, where it goes, and what it’s for.
Here are a few tips to help you if you’re a tad bit unsure on how to go about dealing with money matters.
Organize. It is crucial for your bills and receipts to be organized and in order. This is because you might end up paying the wrong amounts and losing track of your list of expenditures. One way to go about doing this would be to keep a file folder of each bill that you pay for, and keep the receipts filed as well. Let’s say you pay for water, electricity and cable TV monthly. Put them all in their own folders, which should be updated with the receipts, with the most recent one on the top of your pile.
Set aside funds every pay day. On pay day, head towards your stack of folders and sort out the money you need to set aside for each bill that you have to pay. Make this your top priority. Then set aside a certain amount every pay day, which should go to a savings account. The rest would now be your spending money, or your so-called disposable income.
Pay bills online or consolidate bill payments. Familiarize yourself with how to pay your bills online. Some banks and financing institutions actually let you consolidate your bills into just one payment. Not only will this save you the time and the energy, but it would also be a good way for you to track your bills, because you will be able to see a record of all the payments you have made. Don’t waste your time any more by going to the teller and paying each utility over the counter. It would be easier and much more efficient for you if you can do it at the comfort of your own home or office.
Discuss your monthly bills with your family, if needed. If for a particular month, you notice that your water bill is exceptionally higher than the previous months, advise your family members to try to save on consumption. If you are open with your children about this, they will better value money and finances, and they can start helping out through simple ways, such as unplugging appliances when not in use.
Review your bills from time to time. Make sure that you don’t miss out on any payments to avoid penalty dues, and to avoid messing up your budget. Start a clean slate every month without any accounts payable, so your payables do not accumulate.
The trick to managing your finances and paying bills on time is prioritization and organization. Sure, everyone wants to buy the latest car, gadget, clothes, or jewelry. However, bills are a fact of life. Rent payment is a fact of life Mortgage payments are a fact of life. You need to be able to prioritize where your money goes, and be organized enough to know how much should be spent for any particular purpose.