Simple Bill Management System

The thought of keeping track of bill payment schedules on top of family and work schedules is too much for already busy families. There has to be a better way to budget payments, be on time with payments, and plan for those sports registration fees! One that didn’t take away hours of the fun time we could be spending as a family. This is a simple bill management system; budget tips for busy homes.

This simple method worked for our family so that we had better control of our finances while being able to plan for big expenses. As a bonus, it freed up our schedule so that we had more time to have fun as a family.

It was another Saturday afternoon and my husband and I had bills spread out, trying to sort through what needed to be paid now, setting up reminders in the schedule for the others, and trying to remember if we paid that other bill on time.

Once again, we were at the beginning of the month, rent had been paid, bills were due and we still had to get through the next two weeks. Why was it that this point of the month was so tough? More bills than money! There had to be a better way…

We found one that day and have been using this simple method to help us through some very busy, and chaotic times. When the family schedule is crazy busy and we aren’t home much we were very grateful that we had kept to this.

To set up this simple bill management system, we first need to figure out where you are. Find your bills and bank statements to begin planning.

Write down your monthly bills and their due dates. Some of these will have automatic withdrawals set up from your bank account already.
- Rent, or Mortgage
- Phone
- Cable and Internet
- taxes
- utilities – gas, electrical, water
- vehicle payments
- insurance – vehicles, life, health
- registrations – vehicles, school, extra-curricular activities
For bills that are variable, like utilities, add up last year’s cost and divide by the number of payments you can budget for.
Set up automatic bill payments through your bank for the day of the month you want them paid. We set up the payment to happen on paydays so that the money was always there.
When you are going through your weekly mail review do a quick check to see if you budgeted correctly. If you aren’t paying enough then late fees will start to add up quickly. If you have a small credit, don’t worry, because that could help you with some utilities like gas, when winter months can be a lot higher costs.

Things to watch for…

Watch that there isn’t too much of a credit on your utility bill. A large credit on your bill, means they are earning interest on your money during those months. Would it be better for you to put the extra money in a savings account for those winter months?

For big expenses, that happen annually, the cost can be greater than what is left after the bills every month. There is an easy fix for that as well.

We set up a separate account for those expenses and similar to the automatic bill payments, and we set up automatic account transfers on paydays. The total cost was broken up into bi-weekly payments and the money was automatically transferred to the savings account.

If there are extras that may come up like dance shoes, costumes, and exam fees we increase the account transfer by a small amount so that we can manage those extra costs without having to worry as much.

Breaking it up to bills into easy automatic payments helped us balance our money for other expenses, and freed up our Saturdays for a family fun time. We were also able to put money aside for the big expenses that are an annual payment.

It is important to still keep an eye on bills so they don’t get away on you. Remember late charges are not the only thing you want to prevent. Having too much credit on the balance is money you could be earning interest in your own bank account.

Remember to set up time weekly to quickly review your simple bill management system, and know where your money is going. You worked hard for that money.