Getting Started... the "Bill Book"
No need to make it complicated!
Knowing where you're at with your money is very important — this is how I begin each month. Whether funds are low or there's a surplus, I always know where I stand going into the month. I have done the following one thing every month for the past 25 years. Having this one system in place has made money planning much less stressful for myself and my family.
By taking a simple notebook and listing every payment due by the end of the month, you can see exactly what needs to be paid and when. This monthly checklist lets you know exactly how much money will need to go out to cover recurring bills and payments. This is not a full-blown budget — it is a quick glance to see where you stand financially for the month.
How to Set It Up
Find a spiral notebook with enough lines on one page to fit each of your recurring payments.
Gather all bills, wherever they may be hiding — this way you have all the info you need to properly prepare your list.
Label the page with the month and year (e.g., "April 2020").
On each line, list specific bill names such as mortgage/rent, utilities, car insurance, and credit card payments.
Next to each item, note the amount due.
Then in parentheses, put the due date.
It puts your mind at ease just knowing you have every "must pay" amount written down on paper.
Tracking Payments
As bills come due and payments are made, cross them off one by one.
After the payment has been deducted from the bank, put a check mark in front of the item — this way you know what has been paid and cleared.
You will be less likely to miss a payment by following this check-off process.
A Starting Point, Not a Finish Line
As the years have gone by, the budgeting process can become more in-depth and computerized. However, even with technology available, doing a written list of recurring payments every month still feels grounding. It just feels good to have it in hand!
It can be startling making this type of list for the first time — many of us don't know what is truly paid out each month. Please don't let this uncertainty keep you from moving forward. When you are done and have those facts listed on paper and out of your mind, you will have a great sense of relief.
Whether these numbers look good or bad to you, this can be your starting point. Either way, you will be in a better position — which allows you to be more confident in your financial future.
Give this process a try. This is a small but big step to finding your place of tranquility!
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