This week is a continuation of last week’s theme, getting your finances in order.
Last week we took stock of our finances, making sure money is allocated to the right places. Organizing a budget is the first step. This week, we are putting guard rails on that plan.
Few things can blow a budget faster than late fees.
And, in some cases, the consequences of missing a bill can snowball quickly. Here’s a miserable scenario:
If you miss your insurance payment, your car insurance can lapse. If you don’t have car insurance, you can’t drive. But If you didn’t know your insurance has lapsed and you were pulled over, they don’t care. You now have a ticket for driving with a suspended license. On top of that ticket, you now probably have to take time off of work—more lost wages— to deal with the court and get your license reinstated.
Yikes.
It sounds like the worst If You Give a Mouse a Cookie story ever. I’ve not experienced it, but I have seen it play out.
This week your job is to set up a system to ensure each bill is paid on time.
Don’t rely on only your memory, We are only human, and life happens. Sometimes emergencies happen, and we lose our rhythm. Having an automatic reminder can save a lot of hassle and a lot of money.
Apps like Google, iCalendar, Remember the Milk, ToDoist, or the To Do App may work for you. Each bill is its own task, and the reminder should be set before the final day the payment needs to be mailed or paid, depending on your preferences.
If you are a paper planner person, put these items in your calendar today and figure out when you’ll get your new calendar to pre-populate for next year.
I pay bills twice a month and the sitter weekly on the same day, at the same time.
This routine has saved me before. Once, I had an issue where the post office decided —I never got a reason why— to stop delivering some of my mail. I only discovered the issue when my insurance agent called to ask if I had moved. No. . . why? We have several statements addressed to you marked Undeliverable: Return to Sender. Thankfully I didn’t rely on that paper reminder to pay my car insurance. I logged in and paid it when the reminder popped up on my phone. If I had missed my car insurance payment, my license would have been suspended, and I may not have noticed, which could have caused the aforementioned cascade of problems.
This week, set up your payment reminders.
Those of you who have a partner who handles the bills ask in a non-accusatory manner how they make sure that the bills are paid on time. While having this discussion, ensure you have access to the accounts they manage. If something were to happen to your partner, not having this access could make things much worse. Please don’t put off this discussion. Life can change quickly.
Have a great week!
