New Year, New Systems Part 1: Bills Bills Bills

Towards the end of last year, I decided that I needed new systems for organizing bills, budgeting, and tracking the way I spend money.  This was mostly driven by the need to pay for grad school, the hopes of buying a home in Loudoun County, AND the fact that I almost missed my credit card bill because it had fallen under my night stand due to my sloppiness.  Not okay.  So I spent a few months Pinterest and Google searching, comparing this method to that method and picking what I thought was right for me. Posting a novel about managing your finances probably isn't the best way to attract or retain readers, so I'll break it up into two posts; managing bills and managing expenses. 

Part 1: Bills, Bills, Bills

Does anyone else have bills flying around in their purse?  Can’t remember if they have paid last month’s credit card bill?  Ask what month is my car insurance due again?  Or slack off at filing the bills you actually managed to pay on time?  I have definitely been guilty of all of these things in the past.

The second I found this idea on Pinterest, I was in love.  Turning something as boring, tedious, and frustrating as bill managing into a cute and custom made system? Done. 

This is what you need:

1.5”-3”, 3 ring binder

1 or 2, 3-ring Pocket Folders

1 set of 5 Sheet Protector Dividers

Monthly Calendar

1 set of 12+ Dividers

I’ve got 5 sections, each designated by a sheet protector divider;

1.      Bills to be paid: under this section, I’ve got a pocket folder with my current bills that have yet to be paid.  Get them in the mail and send them straight to the binder until you have time/money to pay them!  Do not stop at the stairs, night stand, purse, or dresser!

2.      Schedule: Here I have a month at a glance calendar for each month where I write the name of the bill on the date that it actually needs to be paid.  When I’ve paid that bill, I highlight it.  I bought a cute Sugar Paper Calendar from Target but you can always print these off online for free.  This is my favorite section because I can visually see where I am and what’s coming up.  I also have a list of my bills paid more than one time per year (picture to the left) next to a box indicating what month they need to be paid in.  Once you've paid the bill, check it off! This is helpful because you can see the entire year at a glance.  Print this form out here!

3.      Paid bills: Here I have the set of 12 dividers but you may need more based on the number of bills you pay each month.  Each divider is labeled by a type of bill or company.  I have one for each of my credit cards, my car payment, my insurance payments, tuition, etc.  After I’ve paid the bill, I hole punch it place it behind its designated divider in consecutive order.

4.      Budget management: This is where I keep a hard copy of my monthly budget.  Not a necessity, but a helpful tool to keep alongside your bills.

5.      Other: This section is TBD.  Right now my receipts and online purchases are here.

Some users like to keep all the bills in the binder for the year and then file that entire binder away after the year is complete.  I think I’ll wait until the binder fills up and then file it away in my box as needed.  That is what is great about this system; you can customize and file however you’d like!  Not to mention, you can pick it up and take it with you wherever you need to go!  I was so excited about this that I even made my sister one, she is hooked!

Stay tuned for part 2: Managing my expenses!