Budgeting can be tough for everyone — no matter how much your income and expenses are.
If you find that you’re perpetually late with your payments or just scraping by to make them, here are a few ways you can set yourself up to never miss another payment again!
Pay up on payday
“First work, then play” is a great motto. By biting the bullet and paying off your bills as soon as possible, you’ll know how much can be left to leisure. If your leisure budget is very small, you may be tempted to overspend when you have the money on payday, putting off your bills until the next paycheck.
However, getting your bills out of the way first will give yourself peace of mind that allows you to better enjoy the leisure items or activities you can afford later on. By paying off bills with your first paycheck, you’ll also give yourself a bit of a backup plan in case something comes up that leaves you with less of your next check.
Keep a calendar
There may be times when one paycheck won’t pay the full minimum of all the debts you owe. In this case, the first step to budgeting your payments is to know how much you’ll have when your payments are due.
You can figure this out by recording the due dates of your bills in a calendar. Also, be sure to record when you get paid, so you can calculate how much you’ll need to set aside for your bills. Setting alerts in your calendar can help remind you when the due date for a bill is coming up.
Set up automatic payments
One of the easiest ways to keep from missing payments is to set them to be taken automatically. This can keep you from ever experiencing a late fee. However, it also runs the risk of making you less aware of your finances.
For instance, you may miscalculate the amount you have to spend on other items if you forget to consider your automatic payments. You may also stop checking your bank account because you know your bills will be paid. This could also cause you to overspend.
The best way to keep from missing a payment is some combination of paying your bills first, keeping track of them and setting up automatic payments.
When there’s no money to pay
These suggestions only work if your income is enough to pay off your bills while also providing for your basic necessities. If you’re finding that your income can’t stretch to pay for your debts on top of other necessary expenses, it’s a good idea to explore bankruptcy protection.
By working with an attorney, you can learn more about how bankruptcy can help pull you out from under the debt.