There is an old Spanish proverb that cleverly encapsulates our small money worries. “Debts are like children: the smaller they are the more noise they make.” And so it is, because no matter how much money we have paid off of a debt, or how little cash we owe to a friend or investment, the small ones still bite at our ankles. There are a number of simple money management techniques that softens the noise that debt distracts us from. It only takes a little organisation and discipline to put the money worries to sleep.
Pay the bills on time
Nobody wants bills, but everybody’s got them, and the best way to tackle them is head on with an open wallet. The quicker we pay our bills the sooner we can move onto other money priorities without nasty obligations in the way. Besides, there’s only one way bills head and that’s up. Some companies make a mint from their late fees. Don’t pay for being late, and always check the details of your bills, especially telecommunications.
Make a money calendar
Think of it like a dollar date. Schedule in the days on the calendar that our bills fall due and when the absolute latest day of payment is without incurring a fee. Colour them up and cross them out when they’re paid. Don’t forget to sometimes schedule yourself in a treat for the day after a big payment. Hang the calendar where it will be seen like the kitchen or the study.
Make the minimum payment possible
You might have three months of phone bills to pay, but leaving them all to grow taller and stronger isn’t going to rid yourself of any debt. Try and pay at least one month off the entire bill. It doesn’t void everything you owe, but it certainly helps to shrink it bit by bit.
Prioritise the payments
It’s all fun and games until someone can’t swipe their credit card anymore. Credit card debt is one of the biggest fee collecting belongings that we carry around with us. Make a list of all of your credit cards and their accounts and place them in order of importance of payment. And then pay them, simple. But this isn’t just for credit cards; look at all of the bills from personal devices, the home and the car and schedule their payments accordingly. Some companies will give a bit more leeway than others for late payments.