One of the most under-used financial ‘tools’ is also one the cheapest and easiest: a simple calendar. Free and easy to use, a good old fashioned calendar can help you master your personal finances. Here’s how:
Choose a calendar that you will look at all the time. If you carry a day planner, that’s perfect. If you don’t, get a paper calendar and put it on your fridge, or your desk at work. Just be sure it’s somewhere you will look at more than once a day, and ideally is close to where you keep your checkbook or where you pay your bills.
1. Avoid Late Fees by recording the date when you are to pay those pesky bills.
When bills arrive (this means e-bills and those you still get via snail mail) mark your calendar with the amount you will pay, on the day you will pay. Include all your bills, even ones that are debited automatically and those that don’t get a paper invoice, like rent or a car payment. If you mail a check, record the amount on the day you need to put it in the mail – ideally one week prior to the bill’s due date. If you use online bill pay that automatically deducts the amount on a pre-assigned date, enter that date on your calendar. For example, your $347 Visa bill arrives and the payment is due on the 20th. If you’re mailing a check write $347 on the 13th (one week prior) or if you’re paying online and will have it automatically debited on the 19th, write $347 on the 19th. Easy! Now, when either the 13th or the 19th rolls around, you know it’s time to pay that bill.
2. Stop being overdrawn; write down when you get paid.
Use the calendar to mark when your paychecks will be deposited into your account. If you’re paid bi-weekly, this will help identify ahead of time those two fantastic months where you get paid three times. It also helps with budget planning if you are paid on the 1st and the 15th (or the 15th and last) to know if you will have your money before the big trip, or after.  Another common problem arises when you get a paycheck a number of days before bills are due – you have a week where you feel (and spend like you’re) rich! Then when bills arrive you struggle to make all the payments on time. With the calendar, you can plainly see the entire month.
3. So that’s why I’m always broke the last week of the month!
After one or two months of recording information, you should have a pretty good idea of where your money is coming from, and where it’s going.  Do your bills pile up at the end (or the beginning) of the month?  If so, a simple phone call to the credit cards or the utilities can solve this problem and spread out the pain. Most companies are willing to change the date your bills are due at least once.
Once you get the knack of this, and are ready to go online, gather the data you’ve collected and enter it into Geezeo’s budget tool for a much more interactive experience.
The more data you record, such as when you take cash out of the ATM, the more accurate your financial picture will be. The calendar helps you create a simple, easy to follow budget, and will give you a greater control over your spending.
Related:
5 Things That Can Quickly Put You Into Debt
November 8th, 2008 at 1:11 am
Great advice!
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