How To Pay Your Bills

Ok so now we have talked about saving some money, so now we can talk about ways to pay bills.  Everybody has bills to pay, the ability to pay them is what what causes the issue.  When you have very little to work with it can become very difficult.

I get paid biweekly.  I make roughly $175 a week after all my deductions.  This is definitely not a lot and then paying bills makes it even more challenging but it can be done with a little skill.  First make phone calls.  Some times if you call you can get companies to adjust your payments.  You can get it switched to a different day if you have too many due at the same time.  You can ask for a cheaper plan on cable or phone. Sometimes you can get a better interest rate on a credit card.  Even if they say no you still have to call to find out.  If you don't call you don't know.

next you have to know your minimum payments and your due dates.  Most of your payments are going to stay the same every month.  This is the payment and due date. Once you know what these are you need to start getting your mind wrapped around when and how much you will pay each pay date.  Not on the due date but on the pay day that falls before it is due.  For example you have a bill that is due the 20th but you get paid on the 10th or the 24th.  Well anything that is due after the 10th is getting paid on the 10th.  If you have anything that is due after the 24th then those bills will come out of your second check.  There may be some weeks that you have less money but making sure your bills are paid is what is important.

Eventually if you are paying off a credit card or something like that it will be paid off.  Then you can use that money to pay off the next thing.  There is debate over whether you should pay off the smallest balance first or the highest interest rate item.  I personally feel that it is better to pay off the smallest balance item first.  This way you will get something paid off quicker and that money can go toward the next item.  The faster you can pay stuff off the sooner you will have more money.

When I pay something off I like to use the 50/50 rule for the money that would have went to that payment.  I put half of that payment toward the next bill to be paid off and the other half in my checking or saving.  The reason for this is it makes you feel better and more comfortable about moving forward.  You want to feel like you are freeing up your money so if you give yourself some then it is extra money each pay period so you feel  like you are succeeding.  If you can put more toward paying off the bill that is great but you don't want to feel like you are never going to get any where either.

So here are some small tips for paying bills.  If you have more questions or suggestions please share.  Lets get saving.