Debt Consolidation

Four Useful Tips To Budgeting Bills

Budgeting bills is crucial when it comes to living comfortably within what you earn. You cannot avoid bills; they are part of life. Whether you are rich or poor, everybody has to deal with bills in some way or other. Some of the most common bills that almost every American has to pay on a monthly basis include utilities, insurance policies, car loan payment, rent or mortgage payment, and other such things. Therefore, it is very important for you to have a budget for the same. If you do not have budget, you may miss some of your bills, which may attract late penalties. If you do not pay your car or mortgage payment for a couple of months continuously, you can even lose your car and home. Therefore, you just do not have any excuse for not having a budget. It takes very little time, and once you have it, your financial life can be very smooth. Following is a brief overview on how you can do this.

Collect The Copies Of All Your Bills

When it comes to budgeting bills, the first thing you have to do is to gather copies of all your bills from the last year. Though most of the bills probably require you to pay on a monthly basis, you must also collect those where you make payments on an annual, half-yearly or quarterly basis. While you are making this list, do not forget to include some basic personal expenses also, such as entertainment, gas, food, magazine subscriptions or anything that you regularly pay for. Organize the list properly, where every bill must include the details like amount and due date.

Prepare A List Of Your Income

This step of budgeting bills is particularly important for those who are fortunate to have multiple sources of income. Prepare a list of your income from different sources with basic details like the amount and the date you receive them. Here, it is also important to note that some of the income sources that were applicable last year may not be available anymore. At the same time, you may have some new income sources now. So, make sure you accommodate all these changes thoroughly in your list.

Compare Income With Your Bills

The next thing you have to do is to compare how much you are actually earning and how much you are paying in bills. If you find out that the bills are higher in amount than your actual income, this is the time to either cut down your expenses significantly or to look out for extra income, such as by getting a part time or second job.

Authorize The Relevant Authorities For Direct Debit

In order to avoid penalties to ensure timely payment of all your bills, you should seriously consider authorizing your lenders for automatic debit from your bank account. Many banks these days provide the option to schedule your payments for utility bills also. It will be a nice idea to use that option.

Overall, when it is about budgeting bills, things can be much smoother for you if you develop your strategies and implement the same while keeping in mind the above four tips.

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One Response to “Four Useful Tips To Budgeting Bills”

  1. John says:

    Bills are the part of everybody’s life, and paying the bills on time is very important to save yourself from giving the heavy penalties. Mortgage loan or car loan proves to be very costly if you default some installments, it is advisable not to miss the repayment otherwise you can reach to a situation where you can lose your home or your car. The article has done a great job by giving such wonderful tips. If we follow these tips, our financial life can be really smooth. The first step should be to make a detailed list of all your bills which you have to pay every month. If you pay some more amount of money to the other funds, you can also add these funds to this list and can make a detailed budget of your expenses. If you have multiple source of income you can make a list of your all incomes and the dates on which you receive them. If you have your bills more than your total income, it is the time for you to be alert and do some thing. It may be like cutting down the expenses or try to increase your income. If you find yourself unable to pay the bills on time, you can go for direct debit process through which your bill will be directly debited from your bank account.

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