- 1). Know how much money is coming into the household, and how much is going out. Do this by making a list off all expenses, as well as income. Separate the expenses list into essentials, such as rent and utilities and desirables, such as satellite television and socializing, and remember that the essentials are what you want to work with when setting up a bill paying system.
Set up a page for each week or month of the year, depending on how often you receive money. Write the name of the expense, such as rent and electricity, and the estimated amount due one each page. Leave room to record the actual amount due each month, so that you will have this information for next year to help you create a new budget. - 2). Keep an envelope on hand to place all bill money into until each bill is paid. Attach the envelope to the expense and income lists so that it does not end up misplaced. Remember that the money in the envelope is only removed when a bill must be paid.
- 3). Call the companies that you pay your utilities to. Ask them about payment plans that will allow you to pay the same amount each month, rather than being stuck with extremely large payments a few months every year. Do this with bills such as electricity and oil. Find out exactly what is expected of you, such as when each payment is due. Determine if they will give a new due date so that you can spread bill payments out throughout the month. Have bill paying set up so that you pay rent one week, electricity the next, and so on.
- 4). Cut back on expenses where ever possible. Make it a game with children, or a challenge. Find new ways to save money on electricity, such as energy efficient light bulbs. Figure out how you can stay warm without using as much oil, or how to use the least amount of water possible.
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