Somehow, I've managed to get all our bills due around the 1st and 15th of the month. I try to consolidate all bill payments (all online) down to two sittings. This way, I always know that my stupid-high natural gas bill comes out on the 15th and to conserve a little cash before hand. I can also trawl through my previous payments online to make sure I haven't missed anything (or missed a piece of mail).

My bank lets me pick day to have the check sent. I just set them up when I get them but have them all paid towards the end of the month, so I know there's money there from my paycheck.

wow. actual sound financial advice. Two thing here that made the biggest difference in my life:
>Get out of debt.
>Talk about money with your partner.

Those two alone will have you well on your way to financial peace.

Bah!

Using this method you'll never be able to buy anything worth more than $750.

You can also set your bills to auto-pay online. I didn't realize people still wrote checks...

@paulcrist: Wait, what?

I like the automatic bill payment method myself. The money for bills goes immediately into a separate checking account that doesn't have a debit card so I can't accidentally spend it. Bill payments are set up using that account.

I'm trying to build that 3-6 month safety net but it's taking so frickin' long!

.....I pay my bills when they come in, too. My "overdraft protection" is $1500 in my checking account that I do not show on my register. And really, I try to keep around $5000 in that account. Only if it's well over ten grand do I worry about buying more stocks. Peace of mind that's well worth the few pennies in interest I'm missing out on!

.....I'm not a fan of automatic bill-pay. I'd like to see the bill before authorizing transfer. Our local utilities have the nasty habit of occasionally billing a customer with an extra zero or two on the amount due. Worst case scenario is that the inflated debit clears, then all other ebills and checks, etc. bounce.

@AcidReign: I hear you on the problems with auto bill pay. I don't feel comfortable having "variable" bills: cell phone, utilities, etc. come out automatically. But for bills that are the same every month: mortgage, insurance, savings (pay yourself first, etc) it's nice to just have them all clear on their own.

It would be cool if you could authorize an autobill payment for something like the gas bill, but put a limit on it. Example: I could tell Verizon that they can autodebit my cell phone bill, as long as it is not more than $10 of what I normally pay.

Having just divorced, I hadn't paid my own bills in 15 years, so I had to get back in the swing of things. I use Bank of America's BillPay, and I find paying bills as soon as they come in keeps me from forgetting to pay one. The only part I don't like is that they have no facility for reflecting the pending outgoing bills in the account balance, so you better remember that $500 in bills is going out tomorrow, because your balance doesn't give you a clue.

I disagree with "Pay your bills as soon as they come in." and "Make your payments automatic."

I open my bills the day I get them and I write on the outside of the envelope the due date. I sort the envelopes by due date and put them in a visible place. I use my computer every day, including to pay my bills, so they're right in front of the monitor. Then, I just make sure they go out a week before they're due.

I also /never/ allow or authorize automatic payments or withdraws. I'm willing to push money out, but I refuse to let people pull money out. I just don't trust companies / people to do the right thing. If there's a dispute, it's your money thats on the line.

@mbrutsch:

I'm not trying to be an a-hole or anything, but why don't you enter the transactions in a check register - either a computer program like Quicken or good old-fashioned pen and paper?

You can't count on your bank to keep track of your balance for you -- you should be doing that yourself.

I have a "bill basket". As each bill comes in I do not open it, but put it in the basket. The first week of each month I sit down, open each bill and pay using an online service. I spend about one hour each month paying bills. After all bills are paid I do not look at any new bills till the first week of the next month.

@Rahnee: That method would not work for me. For my Chase Visa, I get the bill around the 17th, and it's due on the 28th. That's definitely one to not let sit. Chase can easily nail you for a hundred extra bucks on a decent-sized balance if you forget that bill for a week!

I take care of my bills when I get them, but don't pay for them until a day or two before they are due. My bank's online billpay allows me to schedule a date to pay (they guarantee the date as well, so if they don't make the payment on that date and it causes a late fee, they cover it for you). Pretty much every other bill is paid with CC and allows me to choose the date.

While paying bills right away may be good for your peace of mind, it could also cost you money. You're losing any interest you might have earned on that money and you also can't use that money for any other purpose (opportunity cost).

The difference between when you get billed and the due date is an interest-free loan to you. Why not take advantage of it?