Organization of Bill Paying

Organizing Financial Records

A particular area should be assigned for financial papers---a letter holder on a desk, a special drawer or any safe and private area should suffice. Financial papers might include records, incoming bills and receipts. The records can be sorted and properly filed during designated bill-paying times. Once a bill is paid, the record can be filed for future reference. Permanent filing locations include filing cabinets, safety deposit boxes and home-office desks.

The envelope method and the calendar method are two popular ways to plan bill paying. For the envelope method, mark an envelope with each bill's name and the amount due, for example, an envelope for rent or mortgage, one for food, one for electricity, etc. Any received wages or payments are divided among the envelopes. Pay the bill when the envelope has the amount listed on it inside it. For the calendar method, choose a bill-paying calendar. Write paydays and the payment amount in one color, write bill due dates and the amount due in a different color (or use different-colored highlighters). Use the visual to determine when to pay each bill.

A variety of personal finance software exists to help computer users organize their bills and other fiscal affairs. Software options include access to online banking, automatic bill payment and data tracking. Online and automatic bill paying is a popular way to organize bills, but it's a good idea to ensure that the bank account linked to the auto payments always has enough funds to cover all expenses.

During times of financial difficulty it can become impossible to pay all bills on time. Prioritizing is a type of organization that's helpful for the financially strapped. The first way to prioritize is to list by what's due first and pay the bills in order. If that's not possible, prioritize by what's necessary for survival. Rent or mortgage should be paid first because missed payments equal eviction, foreclosure or homelessness. Next on the priority list is utilities like heat and water. Most utility companies will disconnect after 60 days of nonpayment and reconnection fees can be costly. Insurance and auto payment come next. Finally, pay balances on credit cards, paying the ones with the highest interest rates first.