5 Reasons Why I Use a Bill Tracker to Track My Finances
Have you ever been hit with late charges on bills or completely spaced that you signed up for a subscription? I have, and this is why I always recommend using a bill tracker to keep track of bills and payments you have to make each month.
Today I am sharing five reasons to use a monthly bill tracker and explaining how that will simplify your financial life and save you money.
1. Stay financially organized
The first reason to keep a monthly bills tracker is that it definitely helps you stay financially organized. The form I am using is available on Etsy. It consists of a calendar, a monthly bill pay tracker, and a monthly checklist of money habits.
This way, you know when your bills are due, and how much you are paying for each one, as well as overall.
2. Plan ahead
Another reason for a bill tracker is the ability to plan ahead. I definitely encourage having at least a one-month calendar, optimally a two months calendar, with what your debts are and when they are coming out.
Why is it important to be able to plan for the upcoming month, not just the current one? This is what will allow you to adjust when your bills are coming out. This is relevant if you need to secure the income that you will use for that month or to have enough on your checking account for those electronic withdrawals.
3. Avoid late fees
The third thing to keep in mind is late fees. How many times have you forgotten to pay your electricity bill or your Verizon bill, and then all of a sudden you get those $5 charges?
Late fees for credit card debt are even higher, you can be charged around $35. Late fees may seem insignificant at the time, but they definitely add up, and this is just money you are throwing away. Having a financial monthly calendar really helps you to avoid late fees.
4. Avoid over-drafting
Moreover, keeping a monthly bill calendar will stop you from over-drafting your account. Sometimes you forget about an upcoming bill or electronic withdrawal and do not have that money in your account, and that causes you to overdraft your checking account.
Having a monthly calendar will remind you to make sure you have the right amount in your checking account by the day of the payment. I actually have a checklist as part of the form that I use. It includes the following steps:
- Review last month's financials and update trackers
- New monthly budget, goals, bill calendar, and pay tracker
- Remembering my pay dates and refilling cash envelopes
- Weekly financial check-in.
5. Keep track of subscriptions
Lastly, with a monthly bill tracker, it is so much easier to keep track of subscriptions. I cannot count how many times I have signed up for an Audible or movie subscription, or a beauty box, and completely forgotten about it.
One thing that I encourage as part of your financial wellness is having that space somewhere, either on a monthly calendar or not, to write down when you sign up for a subscription.
This way you remember when the payments are due and when you need to cancel the subscriptions you do not want anymore – and we all have subscriptions that we intend to cancel after a month or two.
Annual subscriptions are even trickier because you definitely forget about them, and they can be hundreds of dollars worth. So review all your subscriptions and see if there are any that you want to cancel, change their dates, or adjust in any other way.
This is especially relevant for movie subscriptions. Try regularly asking yourself: how many movie subscriptions am I subscribed to? Is there something that I can cut back on and change?
How to use a bill tracker
These are just a few things that are important to keep an eye on if you want to grow financially, and using a monthly bill tracker can definitely make this load easier and save you a lot of time and trouble.
What are your financial goals for this month and the new year of 2023? Let me know in the comments. I would love to hear from you guys.