Do you always run out of money before your bills are paid? Maybe, it is time to get organized.
Where to Start
Start by listing all of the monthly bills in a notebook and start with the first month. List the name, payment, and due dates for each company. Then, at the bottom, total them out. If you have any variable bills; like your electric or phone bill, estimate the highest possible amount. Include all normal bills that you pay every month. Include a payment in the list for savings and yearly bills.
Now, take the total amount and divide by how many checks you get a month. This is the first thing you need to take out of your pay each paycheck. Doing this will assure that all of your major bills are paid. All of the rest of your pay is for everything else like food, gas, clothing, and entertainment. This is a basic budget, but easier to keep track of and if you write the date each payment is paid and the amount you pay each month as you go along, you will be sure all of your bills are paid without missing any.
Automatic Payments To Save Money
Time is money! By setting up automatic payments to pay bills, that equals time saved from having to write checks, pay online, or other methods of paying bills. Since this is done for you, you are also saving money because you can use that time to more productive things. Automatic payments are easy to set up and almost every company now offers this. Because the company prefers this method, some companies offer discounts for paying this way. Again, this is a another way to save money.
Cash is King
Next step is to figure out how much money you spend on average to eat out and everyday spending. Once you have a good average, take that out in cash every paycheck and use that for your everyday spending. When the cash is gone, so is the spending. Sticking with this cash system, will allow you to become aware of spending but also stop the overspending.
Gas Food and Clothing Money
One method to handle the necessities of life is to plan for them, In another ledger or book, write down the three main categories; gas, food, and clothing. Next, budget out how much money you need each month for these items. Then track each expense as you spend it. When one month there are no clothing expense, roll that over for the next month.
When someone tries to budget everything right down to how much they spend on their lunches, it causes a lot of stress. By doing this, it seems like you will better stay on track. For some people, this works, but for most people, they become frustrated and give up budgeting altogether after a month or two.
Ways to Save Money Without Stress
When using this budget system, don’t count the extra paychecks that you get on the five weeks months, These can be used to catch up on something, pay more debt, or buy something that you normally would not buy. However, most important, it a great way to save money without stressing about where it is coming from.
Start Right Now to Save Money
Budgeting should not be put off until one has the time to sit down and do it. Now is the time! Start right now by trying this simple way to get organized and stop wondering where the money went while still getting all your bills paid on time.