Bill management 101: How to stay on top of your monthly expenses

Quick insights

Paying bills might not be a task that many people look forward to, but it is an important part of managing your day-to-day finances. Being aware of your recurring bills and their amounts can help you stay on budget for other expenses, like student loans, travel or even your retirement fund.

In this article, we discuss practical tips for paying bills and staying on top of your monthly expenses.

Budgeting your monthly expenses

Creating a monthly budget is one part of managing your finances effectively because it accounts for your expenses, including what bills you need to pay and when. Common bills to budget for include:

A well-structured budget not only helps you track these expenses but also allows you to evaluate whether you have bills that can be eliminated or reduced.

Regularly monitoring and reviewing your budget can also help you stay on top of any changes or additions to your bills, allowing for timely adjustments to maintain a balanced financial plan. For example, you may want to save additional money for a set period of time if you’re planning for a vacation or scheduling a medical procedure.

How to make a bill checklist

Your budget should include all your fixed and recurring monthly bills. But sometimes, having a checklist of bills that is separate from your budget can help you stay more organized and prevent missed payments and late fees.

Your bill checklist should list all your monthly bills and include details like:

When you have your list set, organizing bills in order of their due date might help create awareness around when they are due throughout the month. This exercise might also help you budget how much of your paycheck should go toward bill payments.

You may also want to regularly review and update your checklist to account for any changes, such as new bills or changes in amounts. This keeps your checklist accurate and reliable.

Tips to stay on top of your bills

Knowing when your bills are due is one step. But here are a few more ways that can help you stay on top of your bills:

Set up automatic payments

Setting up automatic payments can be an effective strategy for managing your bills. Automatic payments may help ensure your bills are paid on time and could reduce the risk of missing a payment.

Many utility companies, subscription services and loan providers offer the option to automate payments, allowing funds to be withdrawn directly from your account without the need to pay them manually each month. Payments can often be arranged through your bank or directly with the service provider.

However, it is up to the individual to ensure that they have enough funds in their account to make automatic payments. Otherwise, they may incur fees.

Set alerts and reminders

Regular notifications can help prevent late payments and keep you organized throughout the month. Reminders could include calendar, smartphone or email alerts to notify you of upcoming bill due dates. Some companies—like your mortgage or utility providers—may also have a notification system. Often times, you can opt in to receive reminders about upcoming bills.

Utilize budgeting apps

There are many budgeting apps that can assist you in tracking your expenses and managing bills efficiently. These apps often provide reminders and alerts for upcoming payments. They also may include a view that allows you to view upcoming bills vs. ones that have already been paid throughout the month.

Align bills with your paycheck

Bills may be due at any time of the month, but it is common for many to be paid on the first, around the 15th or the last day of the month. If you find that most of your bills are due at the same time, that may make budgeting for the entire month more challenging.

It could be helpful to match bill payments with your income schedule to ensure you have sufficient funds available when bills are due. It may be possible to alter some of your bills’ due dates to spread them out more evenly throughout the month (though this depends on the company/provider).

Schedule a bill paying day

Setting aside a day or two each month to pay your bills may be easier to manage than payments as they come up. Scheduling these days on or around your payday can help provide a reminder to pay on time. Plus, if your bills get deducted from your checking account on payday, the majority of the funds left in your account can be reserved for other variable expenses.

Prioritize bill payment

If you are struggling to pay all your bills, it may be a good idea to prioritize which to pay first. It can be helpful to prioritize bills that cover essential needs like housing and utilities before less crucial services like gym memberships or other subscriptions. You may also want to prioritize bills that could directly affect your credit score, such as credit card and loan payments.

Some bill providers offer grace periods or flexible payment options. If you're struggling to pay a bill, contact the provider to discuss payment plans or extensions. Some companies also offer reduced rates or deferment options.

In summary

To manage your bills effectively, you may want to create a monthly budget for a clear overview of your bills. In addition to a budget, maintaining a separate bill checklist with due dates and payment methods could help you stay organized and potentially prevent missed payments. Regularly reviewing and updating your budget and checklist can help you stay on top of any changes in expenses.

Setting up automatic payments can help ensure timely transactions and reduce the risk of forgetting to pay a bill. For bills without associated automatic payments, you may want to set up regular reminders or schedule designated days each month to make payments.