No Stress Bills Manager
Bill budgeting is one of the most important factors in a working budget as an unexpected utility bill can throw a budget that has been working for a few months into complete ruin and leave you with a bad taste in your mouth about budgeting. although this guide is extremely basic we need to remember that it is usually the simple things in life that work.
our new Online Bill Manager
Step 1 Frequency.
Take your most recent Bill and find the period of time that the bill covers (Monthly, Quarterly, Etc.) and transfer this number into days. For example a monthly bill will leave you with a frequency of 30 days (although some months contain 31 days it is better to underestimate at this stage).
Step 2 Daily Expenditure.
Take the total for each individual bill and divide it by the frequency as discussed above.
For example a monthly bill of $140 would be expressed as:
Frequency
= 30 days
Total = $140
150
Divide by
30 = $5
So the daily Expenditure for this bill is $5
Step 3 Payments.
Now step 3 starts with almost the opposite of step 1 except that you will be multiplying the Daily Expenditure amount by the number of days between payments(Income pay days).
For example if I get paid fortnightly I will multiply my $5 daily expenditure by 14 (number of days in a fortnight), and this will give me the total for my “No Stress bills" payments.
Where to now?
The most effective way to use the above information is to setup an automatic bill payment through your financial institution's Internet banking system or over the counter. It is best setup to pay directly on the day that your pay is received (as most automatic transactions occur very early in the morning). If a small amount of money has been taken every pay for your bills before you can spend it it will keep you on track even in those times of doubt.
Over time
this will lower the amount owing on a bill when it arrives, as you are
paying portions off on a regular basis and with a little fine tuning
you will find that your bills will start arriving in credit. A bill
arriving showing that they owe you money is as good as a holiday. So
get started and take a holiday from bill paying for ever.
"Money
can't buy you happiness but it does bring you a more pleasant form of
misery."
Spike Milligan.