You are not alone if the thought of handing over your hard-earned cash gives you mental amnesia about the dates bills are due. The thought of paying bills, especially those that do not coincide with payday, is not pleasant, and the tendency is to avoid thinking about it. The trick to avoiding these mental lapses that amount to big late fees and hurt your credit is to create a system of paying your bills that makes the process as quick and pain-free as possible.

Working out your initial system now takes the brain work out of paying your bills month to month, making the experience less stressful and more rewarding for you. Here are three proven systems for you to try on your discovery to find what works for you:

1. The Envelope Method – Try this if you like to work with cash and get a feel for how much you are spending.
2. The Calendar Method – Try this if you are visual and like to see the days income arrives and when bills are paid.
3. Personal Financial Management Software – Try this if technology makes your life easier

Envelope Method:

You will need:

• Envelopes
• Pen
• Cash

Steps:

1. Gather an envelope for each expense category (rent, utilities, food, etc.).
2. Label the envelope with the expense category, the amount needed, and the due date.
3. When you receive income, divide the money into envelopes based on the listed amounts.
4. Pay bills as soon as you receive them so you will not be tempted to pillage your envelopes.
5. If you prefer paying larger expenses like rent or car payments with a check or money order, write out the check or money order and place it in the envelope instead of cash.
6. Apply excess income towards next month’s expenses, other expenditures, or put it into your savings/emergency fund.

Calendar Method:

You will need:

• Your calendar of choice (a large wall calendar, planner, Microsoft Outlook calendar, etc.); and
• Two different colored pens, highlighters, or categories in Outlook.

Steps:

1. Select one color to write in all paydays.
2. In another color, write in the days when your expenses are due.
3. Remember: some due dates may fluctuate month to month for credit card bills because many are on a 28-day cycle, so mark your calendar accordingly.
4. Apply excess income toward next month’s expenses, other expenditures, or place it into a savings/emergency fund.

Personal Financial Management Software:

What you will need:

• Personal finance software

Choosing your personal finance software:

• There are many software products on the market. Read the Personal Finance Software Review online for product comparisons. http://personal-finance-software-review.toptenreviews.com
• Before you purchase, consider if the software program allows you to access online banking, pay bills online, and split bills and expenses when recording data. Consider any other features you believe will be important for your financial success and find software that is capable of performing those functions.

Setting up a defined system for paying your bills allows you the peace of mind of knowing that you will not forget to pay an important bill and be forced to face the consequences.