Financial Management Tip Day 2: Why is it Important to pay your bills on time?

Financial Management Tip Day 2: The importance of paying your bills on time

Simplify your bill paying and never pay a bill late again. Why is it important to pay your bills on time? Late bill payments will cost you –interest and late charges that quickly add up. Not to mention your credit rating and credit score are greatly affected by late payments on your bills and debt.

First off, get organized (find all your bills and keep them in one place). If you still write checks for your bills, gather all needed supplies (checks, stamps, envelopes, check book, etc) and keep them all together in one place.

Designate a day for paying bills (for ex. maybe 2 times a month after bi-weekly pay cheques -the 15th and at the end of the month orĀ evenĀ once a week on Saturday or Sunday).

If you are married, make sure both people know where the bills are, the amount due and due dates, the account logins and passwords, in case of an emergency. It is also useful for making sure both people have some control over the money and understand where the money is going.

I developed a simple Excel spreadsheet to track our bills. Its very simple and easy to do. I put three months on one page.

3 columns (1. due date, 2. amount due, and 3. paid/date and amount). The rows list all our bills and account numbers (power, cell phones, rent, insurance etc.)

Anytime we get a bill either electronically or in paper, we take out our sheet and update it with the due date and amount due.

Once a week either on Saturday or Sunday, we go and pay our bills.

Try to implement a new system for paying bills but remember keep it simple, easy and quick so you can keep up with this habit and say good-bye to late charges.