In the case of health care, waste it can be as simple as choosing a name brand drug over a generic drug. ![]() One benefit of having a budget and tracking your expenditures each month is that you will more easily be able to recognize where you’re wasting money. Health care expenses are important to track because believe it or not, it’s possible to waste money in the area of health care just as it is with any other category. However you choose to categorize them is up to you, of course just be sure you’re including them in your monthly expenses when working with a budget. House payments or home equity loan payments.Others find it more helpful to keep ongoing, monthly debt obligations in a separate category. Some people like to break debt payment obligations down into the individual categories they relate to, such as putting your car payment into the “transportation” category. I don’t add expenses such as health care expenses in this category we’ll talk about those in another category. New toys that aren’t gifts for a birthday or other holiday.Extracurricular expenses such as hockey or dance.ChildcareĬhild related expenses can include anything related to the care of your child that’s not a part of your health care expenses, which I recommend tracking separately. In those cases, we add restaurant trips into our food category. We put restaurant trips in the entertainment category unless we go purely for the reason that we need to eat and aren’t near home. You may do things differently, but some people also add restaurant trips in this category. Food costs associated with work, such as lunches, coffees, etc.Money spent on school meals for your kids.Foodįood expenses can include any costs you spend on eating, such as: One good way to prepare for larger costs such as a new furnace would be to have a special savings account where you put money aside each month that is specifically designated for large home repairs in the future. Some of these types of costs may fluctuate each month so you’ll need to keep that in mind when you create a monthly budget. Property tax payments (unless they’re collected with your house payment).Repair costs such as a need for a new vacuum, furnace, flooring, etc.Maintenance costs such as landscaping, replacement light bulbs, etc.Utility bills such as electric, natural gas and water.Home expenses will include everything related to your home, including items such as: Let’s talk about each category and what types of expenses you might assign to each one. ![]() Typical monthly expenses can be broken down into several basic categories. What if I Don’t Have Discretionary Income?.But there’s one more way to make automatic payments stress-free. Not only have you put yourself on a path to avoiding late fees and potentially negative information on your credit report for late payments, you’ll also never have to wonder if you forgot to pay your car insurance last month. ![]() ![]() Enroll the bill or credit card in automatic payments, designating the account that will be used to pay the bill each month.Gather the account information for each bill and credit card: account number, mailing address, monthly payment amount and due date.If you need a next-day payment plan, such as Expedite Payment, that can usually be arranged for a small fee. Many offer valuable rewards programs where you can earn points for each bill they pay for you every month. Make a list of all your monthly bills and credit card payments.Here’s a step-by-step guide to making sure you get all your monthly bills automated through bill pay at your bank. It’s easy to set up automatic payments for your monthly bills. The ability to “set it and forget it” lets you rest easy knowing that your bills will be paid on time each month without you having to lift a finger.Ī Guide for Transitioning to Automatic Payments When it comes to managing your bills stress-free, automatic payments are top of the list. You’ll likely have to enroll in their automatic payment system and provide your debit card or checking account number.įrom there, your automatic payments are all debited from your checking account on a specific date each month. Setting up automatic payments through companies you pay is a little more complicated. You’ll just need to enter a few simple details, like the dates your bills are due. For example, eBills will provide notifications and options to pay immediately. To set up automatic bill payments through your bank, ask about their bill pay feature. Automatic payments are payments that you can set up either through your bank or directly with the companies sending you bills, like your car loan provider or the electric company.
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