Money Matters: What Is the Best Way to Keep Track of Bills?

Posted September 15, 2020 by in Lifestyle
calculator and money

Budgeting your money can actually help reduce stress. So why doesn’t everyone budget their money?Well…there are a lot of reasons people don’t budget. It couldn’t be they feel like they never have enough money to budget. It could also be that people don’t like to spend time budgeting.

If you want to keep track of your bills and how much you spend each month, a budget is the best way to do that. If you need some guidance, are are some budgeting strategies and other financial strategies to help you keep track of your bills:

person planning their budget for the month

Download a Budget App

One of the best ways to budget is to find a system that works for you. That means downloading a budgeting app that gives you the tools to make budgeting easier.

For instance, YNAB is a budgeting program that gives each dollar a job. So if you get paid $2500 a month, you can assign each dollar to a job such as bills, groceries, and misc items.

Mint is another tool that allows you to budget with their software. You can track your spending with this budgeting software. Another cool tool is that you can check your credit score.

While there are several budgeting apps in the market, the best free personal finance app to use is MoneyPatrol. The app lets you track and monitor transactions, set and manage budgets, take a picture of your receipts and store them, and analyze your daily, weekly, and monthly spending trends.

Overall a budgeting app helps you stay consistent and understand where your money goes. It helps you assign money to where it needs to go.

In addition, with a budgeting app, you have the work done for you. You can don’t have to create a spreadsheet and be an accountant to understand where your money goes.

You can see firsthand how much you’re spending and what you need to save.

Give Yourself a Limit on How Much You Spend

When you have a budgeting app and you see where your money is going, you’ll have a better idea of what you need to pull back on.

You’ll have a better idea of if you’re spending money on going out to eat too much. Or you might be spending too much money on entertainment services or on Amazon.

The goal is to put a limit on how much you spend. You should cap off how much spend on going out to eat and on entertainment services.

Whatever money you have left over should be put toward savings and retirement.

When you put a cap on how much you spend on luxury items like going out to eat and entertainment, it allows you to save more. In addition, you are saving for the long haul and not just the short-term.

Check You’re Recurring Bills

With the rise of subscription services, it’s easier to pay to get hooked to something that you’ll have to pay for every month.

That’s why it’s important to check what you’re credit card is hooked to when it comes to subscription services. You want to ensure that you hold off on paying for any recurring bills that could cause you to overbudget.

Plan for More Expensive Months

Another way to help you keep track of bills is to keep track of how much you’re paying every month.

Some months are naturally going to be more expensive with the holidays and birthdays. That’s why it’s important to look at the extra bills you are paying each month.

For the months you are paying extra, you should try to save up and put money aside for those events. When you budget for Christmas, you should be saving up months prior because you know your credit card bill will be higher.

You should also consider putting money aside when the AC and heating bills are higher in the summer and winter. These bills tend to be higher because you use more electricity and heating during the middle of summer and the middle of winter.

Track Everything

Another important step when it comes to keeping track of bills is to track everything. That means keeping dates of when something is paid.

if your water bill is due on the 10th of every month, you should know to have enough money in your bank to pay for the water bill each month.

When you track everything, you’re able to stay on top of you’re spending. You know where the money is going and when it goes out.

Set Habits

Lastly, it’s important to set habits each day to ensure you keep track of your bills. If you don’t, you won’t have a system for reaching your goal.

The best way to track expenses is to have habits in place that require you to track everything, even if it’s only 20 minutes per day.

Habits are a good way to track your bills, which may require keeping your paycheck stubs so you can see how much exactly you’re making each month.

If you want to create your own paystubs, you can go to checkstubmaker.

Now You Know the Best Way to Keep Track of Bills

Budgeting can be difficult for anyone. It takes time and effort. You have to continually monitor your spending and make sure you aren’t going overboard. But the tools mentioned in this article can help you get started!