There are financial penalties if we don't pay our bills on time or if we forget and don't pay them at all. What if you did pay the bill, but the company disputes that they received the payment and you have no way of proving that a payment was made. This is a system that will allow you to go back and reference payments that you made, so you will always have proof of payment.
Now our goal for this blog is to set up a mail system and organize this system in your home so it will work efficiently. Like my post describes, we are doing this on a budget. You do not have to go out and purchase expense filing systems, ledgers, or any other type of organizational systems in order to complete this task. I will post items that are a reference of what you can use and will also post more expensive systems if you wish to purchase those items.
Step 1: Set up your Home Mail Center
Choose a central location in your home to house all your mail, coming in and going out. This should be close to your filing area and where you keep your mail supplies. You should also have ample room to work on a flat surface.
As part of your mail supplies, you should have :
- Tickler system, inbox or basket for bills and paperwork
- Pens
- Stationary and cards
- Stamps
- Stapler
- Post-it notes
- Scissors
- Tape
- Paper and binder clips
- Calculator
- Address book and family calendar (Will be separate blogs)
- Telephone and computer ( Optional)
At the end of this post will be some options of mail storage that is available or you can take these ideas and head to the dollar store to set up a cheaper version of these.
Step 2: Gather and sort all your unpaid bills and bring them to mail center of your home
If you have all your bills in one central location it will be easier to deal with them during your weekly planning sessions, which I recommend you do on Saturdays or Sundays, but more of what works for you.
When you receive your bills, immediately open the envelope and write the due date on the front. This way you have an idea of the deadline.
When you receive your bills, immediately open the envelope and write the due date on the front. This way you have an idea of the deadline.
Step 3: Set a weekly schedule to do pay your bills
Now let's set up a weekly paperwork session to pay bills and handle your finances and to tend to additional paperwork that may have accumulated.
If you pay your bills on a weekly schedule, even though you may not get paid weekly, it is easier for you to form the habit of paying bills on a schedule and bills come due at different parts of the month. It also helps you keep on top of the paperwork and to give you an idea of how much money you need to save out to pay the remainder bills for the rest of the month.
During you weekly session, it is a good idea to file receipts, make intended phone calls, work on the family budget and balance your checkbook. Also, take the time to make your weekly shopping and healthy meal planning list (which I will post a new blog about), update your planner/calendar and send out any greeting cards.
Sort bills by due date and pay ones that are due first.
Your goal now is to pay all the bills that are due soon. This would be a good time to set up a monthly bill worksheet. You can do this through excel or using a notebook. There are also some great monthly budget books out there for you to record your bills in. I will post some examples below.
Some of your bills will be reoccurring bills, that will be due on the same time of the month in the same amount. You can set up a calendar to keep track of when bills are due and the amount, and the ones due on the same day and amount, go ahead and put them on the calendar for the rest of the year.
As you pay each of your bills, make a note for the date, amount, check number or confirmation number on the bill. This way you have a record of when, how and how much was paid.
Some of your bills will be reoccurring bills, that will be due on the same time of the month in the same amount. You can set up a calendar to keep track of when bills are due and the amount, and the ones due on the same day and amount, go ahead and put them on the calendar for the rest of the year.
As you pay each of your bills, make a note for the date, amount, check number or confirmation number on the bill. This way you have a record of when, how and how much was paid.
Step 4: Organize your paid bills
Now let's set up a simple filing system to keep track of the bills that you have paid. It's probably best to keep record of your bills for at least 2 years in the event any dispute comes up.
One of the easiest systems and budget friendly system for bill filing is to save all the months bills that have been paid together. Buy some folders, at least 12 or get an expandable folder with at least 12 dividers and label each folder/divider by a month- January- December. When you file, let say, your gas bill for the month of March, once it's been paid, drop it in March's folder. You can keep these folders ongoing year after year.
Step 5: What do I do with filed bills at the end of the year?
You will create an annual routine for purging your filing system and getting it ready for the new year.
If you have already accumulated 2 years worth of bills, throw them out. I will give you a post about setting up a home filing system and where to store yearly bills.
I hope you have enjoyed this quick blog on getting set up for bill organization and I will probably post a YouTube video on what my bill organization looks like. I will post the video here once I get it filmed.
I would love to hear your ideas on how you organize your bill system and how my system could work for you, especially if you are new at this.
Hope you have a great weekend and love to all!
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