While nobody really looks forward to doing their bills monthly, much less even more frequently, experts agree that making weekly time for bills is a smarter way to go. Reviewing and paying bills on a weekly basis can save you headaches, hassles and keep you ahead of your financial goals.
Here are 10 reasons why it’s important to schedule time for bills each week.
Reduces Your Stress
Reviewing your bills weekly means you have a greater likelihood of paying them on time, and this can reduce stress, according to Nick Hodge, founder of Daily Profit Cycle.
“Making your payments on time is essential if you want to live a stress-free life,” he says. “When you put off paying your expenses, the likelihood of forgetting to do so grows. There’s also the possibility that the money has already been spent elsewhere. Bills are piling up and you don’t have the money to pay them. Fortunately, this is a cause of stress that may be avoided entirely.”
Reviewing bills on a weekly basis can help prevent you from going into debt, says financial advisor Winnie Sun, managing partner of Sun Group Wealth Partners.
“If your spending is getting higher than your monthly allotment, it gives you a chance to pull back and take a financial breather for the next week of the month.”
Establishes Good Financial Habits
A weekly review also enables you to pay close attention to your income, Sun says. “It’s also a good habit to know when you are getting paid. Set up the same alerts so you can see that paycheck being deposited. This is also great for your financial mental health knowing that your hard work is being financially rewarded and can motivate to take on an extra project or even to ask for a raise.”
Helps Catch Fraud
With today’s increased risks of cyber attacks and fraud, Sun says it’s more important than ever to keep track of your in and outflows when it comes to your money. “In most cases, the faster you’re alerted of fraud, the sooner you can contact your financial advisor or institution to get this corrected.”
Prioritizes Financial Goals
When you know how much you’re spending, you can also know how much you have to save for those important long term goals, Sun says. “When you don’t spend, consider adding to a Roth IRA or even making an extra contribution into your company 401(k).”
Keeps a Healthy Credit Score
Reviewing your bills helps you to stay on top of paying them on time, and that’s important to your credit score, says Paul LaPiana, CFP, head of product with MassMutual.
“In recent MassMutual research with young adults, only half — 52 percent — knew that their history of making payments on time can have one of the biggest impacts on their credit score. This is also important as a low credit score can result in difficulty securing a loan or high interest rates.”
Prepares for the Unexpected
Bills should be reviewed weekly along with other finances to prepare for the unexpected and make further adjustments, says Randy Jones, a wealth manager for Financial Growth Partners.
“I often encourage my clients to prepare for the unexpected by creating a savings plan. When a person reviews their bills weekly along with their finances, they can actually see where their money is going on a daily basis. A person may realize they did not have to spend as much money as they did after reviewing their finances at the end of the week.”
Builds Financial Stability
“Paying bills may not be the most exciting way to spend your time, but it’s an important part of maintaining financial stability,” says Brian Meiggs, an entrepreneur and founder of My Millennial Guide, a personal finance website. “When you make it a priority, you’re less likely to miss payments or incur late fees. You’ll also have a better handle on where your money is going each month. Paying bills on time is also important for maintaining a good credit score, which can save you money in the long run.”
Meiggs recommends setting aside 30 minutes each week to review your bills and make payments, at the beginning or end of the week. “Once you get into the habit of paying bills on a regular basis, it will become second nature and won’t feel like such a chore.”
Helps You Invest
Reviewing and paying bills on a weekly basis sets up good financial habits and, “makes room for future and further investments,” says financial and tax advisor, Adam Ng, founder and CEO of Trusted.
“If you have set up an automatic payment to all the places you owe money, you will not only never miss payments but you will also know exactly how much and where your finances are flowing. This gives you more time, space, and knowledge to plan and implement any future investments or expenses.”
Reviews Your Spending Habits
“Reviewing your bills on a weekly basis can often prove to be quite the sobering experience, especially if your spending habits are not well-aligned with your earning potential…it discourages complacency,” says personal finance expert Mila Garcia, co-founder of iPaydayLoans.
“This in turn means that you can better spot any potential fee increments, as well as come to terms with any unnecessary and excessive expenses that you may have been initially hesitant to get rid of. And as a bonus, paying your bills on a weekly basis is a sure-fire way of avoiding any potential late fees and dings to your credit score, which ultimately goes a long way in helping you to improve your financial security.”
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