Money Management

Simplification Strategies Part 1

I check out several blogs every day, especially Personal Finance Blogs, and I am always amazed at the things that I learn. But, I must admit, sometimes the vast amount of information that is out there about personal finance can be overwhelming. So, I decided to do a few posts about organizing and simplifying your money management. Part 1, below, is a chart for organizing your bills and payments. You CANNOT create a budget without proper knowledge of where your bills are coming from, and where your payments are going. The chart is pretty easy to understand.

Bill Organization
Name WebSite Address Phone Accnt Pymnt Freq. Due Date
Bank of America 123 Street NY, NY 555-
155555 25 M 5
Honda Credit 124 Street NY, NY 556-
1555155 200 M 7
Power Company 125 Street NY, NY 557-
1555155 100 M 15
Dish Network 126 Street NY, NY 558-
1555155 75 M 21
Local Phone 127 Street NY, NY 559-
1555155 50 M 15
State Farm 128 Street NY, NY 560-
1555155 50 M 8
Cotton States 129 Street NY, NY 561-
1555155 200 Q 9
Local Gas 130 Street NY, NY 562-
1555155 50 Q 1

Now, you have a better idea of where your money will be going, and when it will be going out. Please note, in the Payment category, you can put the actual amount (if constant) of an average amount.

Now, here is what I do with this information. For every account that has a website, I go to that site, and bookmark the login page. I have then created a favorites folder in my browser that contains each and every site from which I receive a bill. I can go, as often as I want, and check the balance or the bill from every single provider. I have also set-up my online bill-pay so that I get most of my bills sent electronically, instead of on paper. In fact, I only receive two actual “paper” bills a month.

Once you begin to “see” how many bills you have to pay in a years time, you can begin to develop a better budget plan for your money.