How to Pay Bills on Time: 6 Helpful Tips

Bills are unavoidable. But though it’s vital to manage bills like your mortgage, car payments and cell phone, paying them on time each month can be a challenge. When life gets busy, due dates can slip through the cracks. When that happens, it can cost you more in penalties, late fees, hits to your credit report and more. There are big benefits to paying bills on time, and the best way to organize bills each month requires a combination of thoughtfulness, thrift and tech tools. 

Luckily, a few simple tips regarding the best way to pay bills each month are all you need to set yourself up for success. Here’s how to manage bills, make payments and organize your finances so you can reap the benefits of paying bills on time.  

How to Pay Bills on Time

Get Organized

While it may seem like a daunting process, organizing your finances and budget is key to paying bills on time. First, make sure you have a list of every bill you pay. It’s important to track bills on automatic or recurring payment, too, so you know what you’re paying and when. Creating a list will help ensure no bill falls through the cracks and ends up on your credit report.

Tip: Use a spreadsheet or budgeting app that allows you to sort and categorize your bills, or create a category in your calendar specifically to track your bills. Be sure to add due dates and when the payment will get deducted from your account to your list.

Set up Automatic Payments

Many bills can be set up to automatically deduct payment from your bank account each month, ensuring that you will pay your bills on time. You won’t need sticky notes and calendar reminders anymore. But if your bills are automatically deducted, be sure to monitor your bank account regularly to detect any errors in the amount deducted. 

Modify Due Dates

It can be tricky to manage bills that are due at different times of the month. Instead, organize your bills by modifying their due date. Get in touch with the companies you pay, like the bank, credit card company or utility company, and ask for an adjustment in the billing due date. This way, you can set up a few days each month that are designated for bills.

For instance, you might organize your bills so that the mortgage, credit card payment and student loan are due on the 1st, and the water, electricity, cellphone and internet are due on the 15th. You’ll be ready for those dates, and you’ll reap the benefits of paying bills on time.

Make Good Use of Your Calendar

When automatic payments aren’t possible or the best solution, calendar reminders and alerts can help you remember to pay your bills. Set a recurring reminder a day or two ahead so you can trigger the payment on time every month, and time won’t get away from you. 

Opt for Email

Most billers will let you switch from paper to digital billing, and from there you’ll receive an email in your inbox. As soon as you receive that email, you’ll know to set up a payment, and it will be easy to search in the future. Many email programs such as Gmail also let you “snooze” an email until a future date, which means you can have the bill reappear in your inbox when you need to make the payment. Let your email do the work for you!

Display Paper Statements

When you’re working with paper bills, it’s easy to let them disappear. They get lost in the stack of junk mail or fall behind furniture. Designate a bulletin board or a file organizer specifically for paper statements and place it in a very visible place in your home. When you pass by this spot, your subconscious mind will remind you to address the bills.  

Consult Your Financial Advisor

Once you land on a system that works for you — stick with it. Simple changes like these can help you figure out the best way to pay your bills on time. Your Farm Bureau advisor can also help you get your financial house in order. Connect today!