3 Ways to Simplify Paying Bills

When it comes to bills, simpler is better.

The less I have to think about them, the happier I am.

Here are three quick tips to simplify paying your bills:

1. If your bank offers an automatic Bill-Pay service, use it!
I'd suggest designating an account just for this purpose. Then figure out how much you need to put in that account per payday or once a month, and transfer it to that account. Set up any bills you can to pay through your Bill-Pay account. All you have to do is transfer funds in periodically, and your bills get paid.

This option is best for bills that are always the same amount. Personally, I use it for any bills I can't pay by method #2...

2. Set up all bills to pay via your credit card.
This is a good option as long as you don't let the convenience become long-term debt. This is the method I use for most of our bills, for a few reasons. First, I don't have to think about it. Second, our credit card earns flight miles, so we're able to rack them up through everyday expenses. Third, many bills change from month to month (like utilities), and the card gives me flexibility to cover them.

To prevent debt, I pay the card off on a continuing basis, from dedicated accounts: debit expenses (groceries, restaurants), house/garden, travel, cars, medical, and short-term emergency. Because I do this, we never have a "must pay" amount on our credit card bill.

3. Reduce your consumption so you have fewer bills.
This is the toughie. We did it in the spring by leaving our gym, eliminating that bill. In the fall, I'll sell my car, getting rid of payments for insurance, registration, safety inspection, oil changes, and random repairs.

Unless you're willing to go live nekkid in a shack and eat berries, you'll reach a point where you can't realistically reduce expenses further. That's cool. But why not flirt with that line? You may discover you don't need what you think you need.

[image via SASS]
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