You know that feeling of when the phone rings and your heart skips a beat because it could be someone chasing you to pay a bill that you don’t have the money for?
So many people get to the end of each week, fortnight or month and have more days left than money.
But this doesn’t have to be the way you live. There’s an easy way to make it all stretch further.
It’s not about more money, it’s about budgeting.
I like to make sure I have more money than days left at the end of my pay week. It’s not always easy, but for me, there is nothing more satisfying than the feeling I get when there is money left over.
While we all have different bills to pay and different lifestyles to keep, no matter your income or outgoings, budgeting can make your money management simpler, less stressful and even help stretch the money further.
There are many tools for budgeting available free online, but in general there are 5 steps you should take:
- Sort your bills
- Add up all your bills
- Add up all your income
- Take your bills away from your total income
- Decide on what you would like to do with that money
The idea here is to put money away each pay day for those bills. You may be left with less than if you didn’t but you will have more than if you just waited to pay the bill when it comes in. I have created a set of simple tools that work great, feel free to check them out yourself.
Putting money aside for bills frees up more for fun
There is nothing more satisfying, well I suppose there could be, but just that feeling I get when there is money left over and I can now go and save and/or spend it on myself or my family.
That feeling of knowing you can buy an extra treat for your kids and you are not going to be overdue on your phone bill. Not having to choose which bill to pay and what to go without.
Make it even easier with a simple system
It is easy to forget to put the dollars aside, which is why using automatic systems makes this even better. Here are three steps you can use to turn this into a ‘set-and-forget’ system:
- Open a separate account with your bank as a bill money account.
- Have your bank help you set up an automatic transfer. This allows part of your pay to be automatically sent to the bill account when you are paid.
- Arrange to have your bills direct debited out of this bills account
By automating the system, you don’t have to think about transferring money every time you get paid or worrying if the bills are being paid or not.