We’re now on Day 4 of Rock Your Finances.  If you’ve missed the previous articles in this series, you can catch up here:

1. Created A 1 Year Financial Plan
2. Identified Your Financial Weaknesses
3. Learned How To Track Every Penny 

Today’s task is pretty short and sweet but results in a huge payoff in that you avoid late fees and service interruptions.

The customary advice is to get a calendar, list your due dates and as you go throughout the month you then make arrangements to pay that bill.  I tend to think this method is outdated because with everything going on in your life, you now have to remember to review the calendar every day for every bill that needs to be paid?  That sounds tiresome just thinking about it!

Forget Conventional Wisdom

We’re in the new millennium with Bill Pay, automatic drafts or whatever automated method your bank or servicer may offer.   Whatever works for you, pick one and stick with it.  I  tend to prefer Bill Pay since I have control over when the money is actually removed from my account.  If for any reason I need to change the amount or pay date then I can log on and do just that.

Another benefit is if there is ever a dispute around if and when something was paid, then I have a copy of the check (online) that was cashed.  Finally, there’s little temptation knowing that the money is accounted for and not left idle until you get ready to pay the bill.

On the other hand, if you prefer to have the company draft the money directly from your account on a monthly basis then call and make the arrangements over the phone.

Lead Yourself Away From Temptation

Paying your bills as they become due leaves you open to temptation or simply forgetting to do so due to day to day stuff.  Once you set up your system to pay your bills automatically, make sure to review them once a month during your monthly finance review which we will discuss later in this series.

So there you have it, set it and forget it!  Throw away your calendar, and make everything automatic so that you can worry about more time intensive issues like reviewing all income streams which is the next article in our series.

Please share how you make sure your bills are paid on time below.  Do you use a calendar or do you make it automatic?