How to Manage Your Finances at Home and While You Are Away

Whether you are in sole control of your finances or it is handled by your spouse, you are aware of the need to keep a watchful eye on your personal finances. We all have deadlines to meet and that includes deadlines for paying bills. But how can you keep a watchful eye on your finances? How about when you are off on your travels?

Note down due dates

Look over previous utility bills and notice when the due dates were for each one. Make a note of all the due dates and group together the bills that need to be paid at around the same time each month. Then look at when you get paid and work out when to pay the bills. Remember to pay the bills within good time, so that payments do not arrive after the due date. If you need a visual reminder of when payments are due, then write this down on your calendar and refer to it each day so that you do not forget when to pay the bills. Many companies, particularly credit card companies, will charge a late fee if you are late in paying your bills. So it is important to be mindful of this fact. Lending companies will think twice before extending credit to a person who is habitually late in paying their bills.
Sign up for online banking

If you have not already signed up for online banking services, I would recommend that you do so. Bank of America and many other banks offer this free service. It is a simple procedure that takes just takes a few minutes. Choose your username and password and then you are all set to check your balance online anytime you want to. Try to memorize your login information, rather than have it written down somewhere, for security purposes. Online banking is a very efficient way of checking each and every transaction that takes place. Have your cheque (check) book handy, so that you can balance it on a regular basis and make sure each transaction has gone through. It can help you spot any mistakes quickly. Online banking services will usually allow you to see a copy of any cheques you have written. This is really useful. I recently noticed a transaction that I could not account for. When I looked at the cheque online I found out that it was someone else's, and that the transaction had taken place in Italy! I immediately called my bank and made sure they credited my account with the money they had used to pay this person's bill! It is a very unusual situation, but if it can happen to me, it can happen to you too.

Avoid becoming overdrawn

Another trick for balancing your cheque book is to round up the amount to the nearest dollar. For example, if you spent $30.79 you would write down $31. This means that the amount you have recorded will be less than the actual amount you have in your bank account. It could even be a difference of $100 or more. This will help to provide a cushion and prevent you from becoming overdrawn. A bounced cheque will not only be a source of embarrassment, but it will incur fees. The bank will charge for any overdrawn money you have used, once it goes beyond your account amount. So be aware of how much money you have in your account and you will be able to avoid becoming overdrawn.

Paperless statements

Paperless statements not only help the environment, they are also more convenient. Once you have signed up for online banking you can easily pay all of your bills from the comfort of your own home. Just think, no more trips to the post office and no more stamps! You will usually receive an e-mail when your bills are due, so that you can then promptly pay them in good time. Another benefit of paperless statements is that you can pay your bills if you know you will be away for a few days. Rather than worry about making late payments, you can take care of them easily and with no worries.

Paying bills in your absence

If you are not comfortable with online banking or paperless statements, then you can elect a close friend or family member to collect and pay your bills for you in your absence. Calculate how many bills will be due while you are gone and sign several blank cheques and make sure you leave plenty of stamps behind. It is best to sign more cheques than you will need. Then your representative can fill in the bill amount and take care of it for you. Make sure that the person you choose can be trusted though, or you may come home to find you have some additional financial problems to deal with!

Do not overspend!

Make sure that you are in a position to pay your bills and properly manage your finances by not spending the allotted amount of money on other items. A budget should help you to avoid doing this.

It is possible to keep a firm hold on the family finances with a little work. I am amazed at how many people do not know how much money they have and have no idea about how to manage their finances. This is risky and can lead to a lot of financial problems at some point in time. You do not need to have a great head for figures. Use a calculator to help you if you have to. The important thing is to find a financial management system that works best for you and to stick with it.