Those are all questions that people struggle with each and every month and they pay a lot of money in late fees and bounced check charges as a result.
If you use online banking I am going to show you a way to simplify this entire process. Yes, you will still have to pay your bills and keep up with your checking account but you will be able to see at a glance exactly where you stand.
You will know:
*What bills have been paid for the month
*What bills you still have to pay for the month
*List whether you pay the bill by phone, auto withdrawal,
check, pay online, etc.
*Organize your bills so you have the same amount coming
out each pay day.
*Exactly how much is in your checking account
*Have a running reconciliation of your checking account
*Know at a glace what check's are still outstanding and
which ones have cleared the bank
It's so simple. Here is how it works:
#1 - Use the Budget Ledger form at the below link to setup your bills in the order they are to be paid. You should put the due date, how you normally pay the bill, estimated payment, what paycheck for the month you use to pay the bill and the budgeted payment.
http://www.homemoneyhelp.com/ledger.html
#2 - Use your Check Register as you do now to log your checking account transactions.
#3 - Use your online banking to verify your Check Register daily, weekly, monthly or whenever you want. When a check shows up on your online bank statement you simply mark that check as paid in your register. You have a constant running balance.
Now, let's run through paying a bill using this system:
When you receive the statement for each bill enter the amount under the month (it's set up to manage 3 months bills on a single form)
On the date you intend to pay the bill simply enter the date (i.e. 5/4) to show that it's paid.
You also enter deposits, atm transactions, interest and fees on your check register.
Enter the payment information in the Check Register and deduct from your balance.
You are done! You know exactly what has been paid, what is left to be paid and your current checking account balance at all times instead of waiting for your paper bank statement.
Just this simple act of managing your bill paying and checking in this manner could save you hundreds of dollars each year.
