This is an area where most people often have the most problems. Do you have a big pile of bills and un-open mail that just keeps growing and growing somewhere in your kitchen?  Do you end up going through that pile trying to find your credit card statement that you forgot was due yesterday, only to find that after 3 times through – it’s not there?  “Where did I put that?”  “Maybe it’s in the car…I think I checked the mail on my way out and just left it in there.”  Well, there’s another $29.00 added to your already growing balance that you’ll be paying interest on for 10 years. You’d think after getting charged $29.00 each time you were late paying your credit card, more people would try harder to remember to pay their bills on time.  What about forgetting to pay your car insurance, only to find a cancellation notice in your mail?    It’s time to get your records in order.  Even just the simple part of organizing the bills you need to pay on a month to month basis.  For some, that’s all it takes to get back on track.  Aside from inputting all your finances on your computer (most don’t have the time to keep up with that) – there is a simple way to keep things in order that takes just as much time, maybe less, than tossing it in the pile and spending ½ hour looking for it 2 weeks later.

Please remember that these are only guidelines for you to use.  Nobody has to everything the way it’s listed here.  Put your own thinking into and do what will work for you.  The important thing to remember is to get organized in a way that’s easy for you and a way that you’ll be able to stick to. 

I’ll tell you what I did, when after a, somewhat, planned system seem to fail after I acquired more than one monthly bill.  Ah, the joys of being an adult.

First things first.  I got a 3 ring binder.  If you have A LOT of stuff, get the 3” binder.  If not, the 1 ½ “  binder will work fine.  Get all your mail together and sort it out.  Half of it will be junk mail.  Get rid of it!  There are even addresses to write to get you off those mailing lists.  Here’s what you need:

• 3 ring binder
• folders that fit in binder
• paper
• pencil bag (for stamps, etc)
• envelopes
• address labels
• calendar
• calculator
• address list / phone list
• anything else that will help you

In my binder, the order is:  pencil bag, blank paper, folders.  I have 2 pencil bags, one for stamps and calculator and the other one I have post-it pads in it.  In the different folders I have envelopes, address labels, address and phone list, calendar, etc.  I have a folder specifically for our bills.  The day a bill comes in, I open it and write on my calendar the due date of the bill.  I also write exactly a week prior to its due date, SEND STATE FARM, SEND CITIBANK, SEND QWEST, etc.  That way, if you get in the habit of looking at your calendar everyday, you’ll see when the bills should be sent so they arrive in time to AVOID A LATE PAYMENT CHARGE!!!  In fact, I ended up taking the calendar out and have it on the wall in the kitchen so I see it everyday.

When you sit down to pay your bills, always ‘record’ that they are paid on your receipt of the bill.  Put the date paid, the amount paid and the check number.  File these ‘receipts’ in another folder in your binder and make a habit of filing them at least once a month so they don’t pile up. (You should have a separate filing system for your paid bills in case you need them for reference in the future.)  I use an accordion file holder and file them all there and it is so simple now when I have to look at a previous month’s bill.   I go right to the accordion file holder and have each section labeled so I can go right in and pull out the receipts.  It has helped when we have had problems with over-billing or when some companies have said we never paid and we had.  You should also file all your bank statements here and keep them for at least 7 years for tax purposes.  I usually keep the receipts from my public service, phone, water, cell phones, etc for at least 2 years. That is completely your discretion. You should definitely keep all your ATM and credit card receipts until you know that the right amount was charged. Your receipt is the only proof you have if they charge the wrong amount. Unlike a check, that is proof itself once cashed, your credit card and ATM card transaction receipts are your proof. For all those smaller receipts, try using a coupon book. They are small, usually the size of a small envelope and can hold quite a bit. And they now come in decorative patterns.

If your bank has automated services – USE THEM.  Call your bank at least every other day to keep track of your transactions.  This is also a good way of detecting fraud on your account – which has happened to us.  But, since I call the bank no less than every other day, I was able to catch unauthorized transactions before they went through our account.  Saved us A LOT of money!  If your bank does not have automated services, make sure to go over your statements when they come in.  It will save a lot of hassle down the road if you keep track and make sure everything is right in your account.

Hopefully after doing this (organizing your bills), it will be easier to keep track of your bills – and help you to remember to pay them on time.  Do it the way it will work for you.  The information I gave you is what works for me, but you may have a better way for you.  The main thing is to get that area of your life organized.  Less stress.  Less wasted time. You'll have more confidence in the financial arena of your life – when you know what’s going on with your money!  

Key point:

Remember, it's simple! Just put everything in it's place. If it doesn't have a place - give it one. If you make it harder than it is, you probably won't stick to it.

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