The first step in starting a budget is gathering all your bills and expenses.

To many people this can seem like a very easy thing to do. You simply write down all the bills that you have and when you are shopping you just write what you bought and the coast. However, this is not as easy for some as others.

I know when I first started budgeting there was always a bill that I would forget to write down ether because it wasn’t a bill that I paid month to month, or I just forgot about it.

The best way to correct this problem is when you are gathering all your bills start with your bank statement. If there are bills that you pay with your credit cards make sure that they are also placed in your budget as well. Another thing to do is write down all the bills that you pay once a year and every 3 to 6 months.

You add these bills in the month that they are due so this way you are prepared to have an extra bill in that month.

Autopay

When I started setting my bills to autopay, I thought that the bill would be paid on the due date every month. I later found out that some bills were coming out 3 to 4 days before the due date and others would not post to my checking account until 3 to 4 days after the due date.

This would cause me to think that I did not calculate my bills right and I would end up thinking I had extra money (when I didn’t) and it would have my checking account overdrawn and I found myself in late fee cycle

Check 1 & Check 2

Knowing what check to pay my bills was another big problem for me. I started paying all the bills at the beginning of the month with the first check of the month. Then I would pay the bills at the end of the month with the second check.

This would work tell I had three checks in a month. I believed I had a free check (no such thing) I would blow the check and later have my bills getting paid late due to the next month the first check would come later. Now one’s again I was in late fee cycle.

Everything Frugal Bill and Expense Tracker

So, like most things in my life when I started my journey to living a completely frugal life I came up with my own system.

Fist I write down all my bills and exspenses that I have every month, twice a year and yearly.

After that I write done the day that they are due on a calander.

Once I have all my bills and monthly expenses (like credit card payments, Netflix, student loan payment) I split them up into two payments. Paycheck 1 and Paycheck 2. I do this for both my bills and expenses.

Paycheck one I write the bills and expenses that fall in the middle of the month.

Paycheck two I write the bills and expenses that fall at the end of the month and beginning of the month.

This helps me to have the bills and expenses right in front of me instead of me having to look down a long list of bills and it also helps me know exactly what bill to pay, how much to pay and when.

Three Check Month

When there is a month that I have three checks I pay the bills at the beginning of the month with the first check, I pay the bills in the middle of the month with the second check and the last check I pay the bills at the end of the month and beginning of the next month in advance. This way when the first check of the next month hit all my bills will be on time. Now you will be on track with all your bills, and some will be paid before there due date.

Track Auto pay

I write down the date that the bill was paid and three to four days later I go into my checking account and write down the date that the bill or expenses came out of my account.

End of the Month Rule

With this rule I don’t add any expenses, pay any extra bills or debt and I don’t transfer any money to another account tell the end of the month.

I do this for two reasons, one I give my bills time to clear my account and two, if something comes up in which, I need to use any, part or all of what I have on hand. I am able to get to it without having to wight 3 to 5 days for a transfer (if it’s a transfer from another bank) and I don’t have to worry about using to many transfers for the month. Most banks have a limit of how many transfers you are able to do throughout the month.

Pay Day Rule

On Payday, the first thing I do when my check hits my account, I pay any bills that are not in auto pay first. Then I make sure that I don’t touch any money in my account tell all bills and expenses are cleared from my account.

Well that is all that I have for today, I hope this helps your on your journey.

Thank you for reading Everything Frugal