How to Organize Your Bills

Having a system for paying and filing bills can help you track your expenses, monitor your investments, check the money you “save,” and avoid missing due dates. In the long run, this will save you from a massive headache when tax season arrives. Here, some tips to organize your bills and files properly:

1.  Open bills as they arrive

Don’t leave your bills unopened. We all tend to forget a bill lying around somewhere. Mark the payment date on the envelope, or log the due date on your calendar once you get your bill. Then, put all pending bills in a bill holder — a filing tray, an envelope, or a basket — on your desk.

2.  Use an “IN” box

Track your expenses by placing paid bills, receipts, or non-receipt cash payments (i.e. phone cards) in an “In” box before filing them. (Your “In” box can be an envelope or a tray). Set a time and day to record these expenses in a notebook or in a spreadsheet in your computer.

3.  Find space and time

To prevent misplacing your bills, find a space for them together with other materials you need like pens, papers, calculator, and checkbook. See when bills are due, budget them, and pay your bills on time. When you designate a day (or days) each month to pay for your bills, you avoid making several trips to the bank or payment center.

4.  Record your paid bills

After paying your bills, record them immediately before filing them separately. This enables you to accurately track all your expenses. As with your non-receipt expenses, you can also record your bills in a notebook or a spreadsheet.

5.  File away

You may use white envelopes and label them on a monthly basis. You may also clip the receipts according to their category such as meals, clothing, gas, and groceries. Another way is to keep a separate envelope for receipts that you can use for tax purposes, insurance documents, and long-term files such as medical payments and mortgage.

6.  Keep your records

An accordion-type envelope should do the trick when filing your records. Organize files by category and label each separator on the accordion file. You may categorize them as “fixed expenses”, which include rent, tuition, mortgage, and loans; or “variable expenses” such as electricity, water, and groceries. Don’t put too many items in the “miscellaneous” category to avoid “hiding” your expenses. Generally, bills that are over six months old are considered outdated. For filing purposes, only keep home bills within the last four months.

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