One way to make your finances easier to manage is to automate your bill paying more. You can do this by setting up direct debits to go from your every day account straight to your bills each week.
What you need to do is sit down with your bills, or just check your payments online to see how much everything costs each year. Divide that amount by how often you get paid. For example if my electricity were $1,200 a year and I get paid fortnightly I would divide $1,200 by 26 and get $46.15.
Next, set up a direct debit of that amount (in this example $46.15) to be transferred either on payday or the day after straight onto your bill. Since all the bills you get that can be paid by BPay come with their own billing code and reference number, any payment you make, at any time is added to your account.
Doing this automates your finances so often when you get your bills you will not need to worry about paying them, as you will have been paying them in small amounts each pay. It’ll also help you plan in advance how much you can afford to save in any regular savings account.
Some people will argue you shouldn’t pay until the last minute so your money is working for you and earning you interest or saving you interest on your mortgage instead. That is true for some people, but I think you need to find what works for you. For many people automating finances is easier, it prevents bills going unpaid and not having to think about it means it gets done instead of incurring late fees.
It does take a little while to work your way up to be able to pay the bills in small amounts each pay since it can often feel like you get a big bill each pay. If you start small, even paying $5 to your bills each pay manually until you get ahead in your bills and can ease your finances up a little to enable you to make the full payments it will help.
Getting started and into the routine is usually the hardest part, but once the system is in place many people find the love it because it is one less thing to worry about and they don’t stress when their bills arrive.
Averaging your bills, especially ones like electricity might mean at times you get a little ahead on your bills, especially in seasons you don’t use air conditioning or heating much, but it tends to balance out over the year.