You might feel secure, smoothly sailing through your financial affairs. Yet, lurking beneath the surface, a storm brews. Unpaid bills and overlooked account balances threaten to disrupt your hard-earned stability. It’s time to take preventive action and regain control over the chaos of disorganized finances.
The Unseen Enemy: Your Bills
Even the most regular bills can morph into financial monsters, changing from month to month, ready to pounce when you least expect it. And let’s not forget about those sneaky electricity bills, creeping up on you with their fluctuating rates. But fear not, for the art of budget revision is your weapon against this unseen enemy. Adjust your expenses, and you’ll be able to slay the beast of overdraft fees.
And remember, each month brings its own challenges. July is going to be hotter than June, so your revised budget will be more realistic going forward. To save $100, you might exchange two dinners out for a bike ride with a packed lunch. Or, dial down a budgeted night out and go to a free concert in the park instead of a pricey restaurant.
Budgeting: Your Survival Tool
If you’re wandering in the wilderness of financial disarray without a budget, it’s time to create one. Start by writing down your expenses the way you expect them to unfold. At the end of the month, tweak the budget by recording your real expenses. This process alone could surprise you and suggest ways you can use your money smarter.
And let’s not forget about the wonders of technology. Financial software isn’t just for investing. Free basic budgeting apps are available online that can help you keep track of daily and household expenses. When choosing a budgeting app, check the app store ratings or verify that the one you’re considering has a good track record with customers.
The Paper Trail: Your Map to Financial Order
Even in this digital age, paper bills still exist, lurking in the shadows, ready to catch you off guard. Property tax and homeowners’ insurance bills typically are paid on an annual or quarterly basis, so they generally arrive by mail. An occasional expense like a medical test may be billed the old-fashioned way. Keep the bills near your desk or wherever you normally write checks or pay bills online. A simple file cabinet or a couple of folders will do the job.
Now that most people take care of bills online, it’s common to shred any paper statements that arrive and rely on online records. If you prefer to keep paper records for tax purposes or just for security, file them in the filing system you just bought or scan them for storage in an online filing system.
Paying Bills: Your Shield Against Late Fees
If you have money available in your bank account and you don’t have other debit card or bill pay charges coming through that could cause an overdraft, pay your bills as soon as you get them. Pay attention to paper bills that you usually pay electronically. You don’t want to pay a bill twice because you got a duplicate by mail. Always call the creditor when a paper bill arrives if you think you have an automatic payment scheduled or electronic billing set up.
Neither mail nor email is perfect. Create a checklist at the beginning of the month listing every bill you are expecting. You can keep it on your desk, bill-paying area or a file on your computer.
The Shared Expenses: Your Financial Minefield
If you share expenses with a spouse or significant other, you can easily bounce a check or debit card payment if you don’t know how much the other has been spending. Say your spouse has the day off and decides to have lunch and go golfing with a buddy. When you get home, you hear about a great game of golf. What you don’t hear is that it cost $150 and your direct-debited student loan payment is about to bounce.
If you have direct deposit you get used to your paycheck being there on paydays. However, electronic payments aren’t always recorded on the expected date. Don’t spend your paycheck without confirming that it’s there. Use one account for discretionary spending and saving, and the other for paying bills. That will prevent you from accidentally spending the rent money on a night out.
The Final Word
Missing bill payments because of a lack of organization is the easiest financial problem to fix. You don’t have to follow all of these tips, but make sure you have an organizational system that you can stick to every month. So, dear reader, remember that the power to navigate the storm of financial disarray lies in your hands. With these survival strategies, you can emerge as a master of informed decision-making, ready to face the financial apocalypse with confidence and courage.
