Do you ever find that you miss paying a bill, and end up with late fees?
Or that you dread paying your bills because you are not sure where you money has gone?
Well, putting your finances on autopilot can help.
Here are some tips to reduce the stress of your household finances:
- Direct pay your utilities every single pay, so that a little bit adds up to a lot. A simple $20 payment each fortnight to your power company can mean that you go from bill shock every 60 days, to bill happy!
- Get work to pay for your savings! We generally spend what we have, so if you use work’s ability to pay your payroll directly into multiple bank accounts, you won’t have the money to spend.
- Have a bank account that you top up each pay for annual bills. That way, when the car rego, or the insurance bill comes, you already have the funds there saved for you. Add in the cost to replace 2 tyres each year, and you will have a buffer there for if anything goes wrong.
To work out how much needs to go into your annual bills account, go through your bank statements for the last year and add up everything that is an annual expense, or could be (how much extra are you paying for being able to pay monthly instead of annually?). Divide this total into 12 if you are paid monthly, or 26 if you are paid fortnightly, and 52 if you are paid weekly.
Then, use your internet banking (or payroll) to set aside that money each pay, into a different bank account that’s just for that purpose.
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Disclaimer: This information is general in nature and doesn’t take your personal circumstances into account. Always seek professional advice for your specific situation.
