How to Budget Bills

Budget Money

Bills are an unavoidable part of life. It does not matter who you are; most people have to deal with bills in some way. The majority, such as a mortgage or rent payment, car or loan payment, insurance policies, utilities and many others, occur on a monthly basis. The best way to deal with bills is to make a budget. This is a financial plan that you create that will give you an overall view of your finances.

Things You'll Need

• Copy of all bills
• Other expense information
• Income details
• Calendar
• Calculator

Instructions

1. Get a copy of every bill you pay all year long. Many bills are monthly, but do not forget to include quarterly, semi-annual and annual bills also.

2. Make sure you also include personal expenses like food, gas, entertainment or any thing else you pay for. Write down the bill name, due date and amount.

3. Figure your income. Write down any type of income you receive. Include the amount and dates received.

4. Total the amount of bills (expenses, debit) you have monthly. Total the amount of income (credit) also.

5. Look at the due dates of bills compared to the dates that income is received. Decide which bills must be paid for each time income is expected.

6. Use a calendar to mark down your bills. Make sure you insert the bills that are not due monthly or make some type of note on the date it is owed.

7. Pay the bills allocated when income is received. Place a check mark or cross out bills on the calendar when paid.

8. Make adjustments as needed to your budget. Allow modifications to the budget as things come up. You may have to use money allocated for something else occasionally. When doing this, use bills that will not charge late fees, if possible. This could also be taken out of your personal expenses.

Tips & Warnings

• If you have expenses or income that is not received on a monthly basis, figure the amount you would have in a year and divide this by 12 to get your monthly amount. When you do not know precise amounts of expenses, use a higher figure in your budget. Do the opposite for your income. Use a lower number. If the amount of your bills is higher than your income, you will have to cut some out or raise your income. Also, make certain that you save the amounts monthly needed for quarterly, semi-annual or annual bills. Use a savings account or at least keep the money separate. If you get paid weekly, figure what bills are due weekly and can be paid with your income. If you have income coming in every 2 weeks, divide the monthly bills in half. Anyone getting paid once per month will have to be able to pay all of the bills with the income received.

• Make certain you pay your bills on or before the actual due date. If you do not, several bills will charge late fees. The goal of budgeting your bills is to have the money for the bill prior to its due date.